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byline: Richard Foster

Scottish company to locate data center HQ in Loudoun

Scottish energy solutions company Aggreko plc will establish its data center division’s North American headquarters in Leesburg, according to an announcement Friday from Loudoun County’s economic development department.

Headquartered in Glasgow, Scotland, Aggreko provides temporary power generation equipment and temperature control equipment.

“We are pleased to welcome Aggreko to the growing ecosystem of energy and infrastructure companies that call Loudoun home,” Loudoun Economic Development Executive Director Buddy Rizer said in a statement. “As much as the data centers are important to the local and global economies, supporting companies like Aggreko are equally important to Loudoun’s future.”

Home to the largest and fastest-growing data center hub in the world, known as “Data Center Alley,” Loudoun has 25 million square feet of operational data center space and another 4 million square feet in development. About 75% of the world’s internet traffic is routed through the county’s Ashburn area.

“The choice to establish a presence in Loudoun was a natural one, as virtually all of our data center customers are present in the Data Center Alley,” Head of Aggreko’s North American Data Center Division Mike Clemson said. “The opportunity for us to grow our data center business in Loudoun County is tremendous.”

Altria to sell winemaking division for $1.2B

Henrico County based Altria Group Inc. announced Friday that it has entered into a definitive agreement to sell its Ste. Michelle Wine Estates winemaking division for $1.2 billion to New York-based private equity firm Sycamore Partners Management LP in an all-cash deal.

The deal is expected to close by the end of this year. The Fortune 500 tobacco manufacturer acquired Ste. Michelle Wine Estates in 2008 when Altria purchased U.S. Tobacco Co. Inc., a maker of smokeless tobacco products. Based in Washington state, Ste. Michelle Wine Estates bills itself as the nation’s third-largest wine company. Its brands include Chateau Ste. Michelle, 14 Hands, Columbia Crest, Erath, Intrinsic, and Patz & Hall.

“We believe the transaction is an important step in Altria’s value creation for shareholders,” Altria CEO Billy Gifford said in a statement, adding that the deal would allow Altria’s management team to better focus on its goal to “responsibly transition” adult smokers to a future of noncombustible tobacco products. “Ste. Michelle and its talented employees have built an outstanding portfolio of premium wine brands, and we wish them future success.”

VCU Health System appoints chief strategy officer

VCU Health System has promoted Nina Hobcroft as chief strategy officer, effective July 1.

 

Hobcroft, who was the health system’s vice president of strategy and business development since joining in 2017, will provide insight and recommendations on both short- and long-term strategic planning, business unit growth and development, strategic initiatives and market positioning. 

 

“As chief strategy officer, Nina will play a vital role in health system’s future success,” said Dr. Art Kellermann, senior vice president for health sciences at VCU and CEO of VCU Health System, in a statement. “As the complexities of health care expand and VCU Health evolves, the CSO will provide a vital operational link between my office, our physician leaders and our important VCU Health constituencies.”

Prior to joining VCU Health, Hobcroft served as senior vice president of strategy and development for HCA Healthcare’s HCA Capital Division. During her time at VCU, she assisted with developing an analytical infrastructure to support data-driven decision-making for strategic growth across the system’s care continuum. She also was a key player in developing  Virginia Children’s Care Network LLC, a clinically integrated network of statewide pediatricians launched in April 2020. 

Hobcroft earned a bachelor’s degree in occupational therapy and a master’s degree in health administration from Virginia Commonwealth University.

Huntington Ingalls Industries to acquire Alion in $1.65B deal

Newport News-based Fortune 500 military shipbuilder Huntington Ingalls Industries will acquire McLean-based defense contractor Alion Science and Technology Corp. from Veritas Capital in a $1.65 billion, all-cash deal, HII announced in a news release Tuesday.

The deal is expected to close by the end of this year, with Alion becoming part of HII’s Technical Solutions division. In the release, HII stated that “Alion’s strengths in enabling and supporting Navy simulation and training are closely aligned with existing Huntington Ingalls Industries capabilities and customers,” and include “access in priority growth markets aligned with future U.S. Navy and [Department of Defense] customers.”

Alion is expected to add to HII’s fiscal 2022 revenue by $1.6 billion.

“We established the Technical Solutions division in 2016 with a vision and strategy focused on partnering with our customers to solve their most pressing challenges,” HII President and CEO Mike Petters said in a statement. “Today’s announcement, coupled with our previous investments in leading edge technologies, such as cybersecurity and autonomous systems, reflects our commitment to stay on the cutting edge of critical, high-growth national security solutions and generate significant long-term value for our shareholders.”

Founded in 2002, Alion has been a portfolio company of New York-based private equity firm Veritas Capital since 2015. Alion specializes in providing ISR (intelligence, surveillance, target acquisition, and reconnaissance), military training and simulation, cybersecurity, data analytics and other technology solutions to defense and intelligence community customers. The company has more than 55 offices in the U.S. and more than 25 research labs. The U.S. Navy accounts for about a third of Alion’s annual revenue and the company has a backlog of more than $3 billion, according to HII.

“The combination of Alion and our Technical Solutions business represents a significant value creation opportunity that broadens our capabilities and customer access in our target markets,” said Andy Green, HII executive vice president and president of Technical Solutions. “The experienced Alion team and the highly complementary solutions and products they provide are consistent with the strategic vision we have articulated for the Technical Solutions business, and we are excited about the significant growth potential this combination represents.”

HII is the nation’s largest military shipbuilding company, employing more than 42,000 people worldwide. The company reported 2020 revenue of $9.36 billion. HII’s Newport News Shipbuilding division is the state’s biggest industrial employer, with more than 20,000 workers.

HII’s financial adviser in the transaction was Credit Suisse Group AG, with Jones Day providing legal counsel. Also advising HII on the transaction were Arlington-based business consultant Renaissance Strategic Advisors and Chantilly-based Arena Strategic Advisors LLC. Macquarie Capital Ltd. was Alion’s financial adviser, with Milbank LLP providing legal counsel.

Commercial truck, van floor manufacturer to build $12.8M plant in Patrick County

Prolam LLC, a Canadian manufacturer of hardwood floors for commercial trucks and dry van trailers, will invest $12.8 million to establish its first U.S. manufacturing plant at the former Ten Oaks satellite facility in Patrick County, creating 58 jobs, Virginia Gov. Ralph Northam announced Wednesday.

The facility will increase Prolam’s manufacturing capacity by 50%, and the company has committed to source at least 65% of its timber from Virginia through the purchase of more than $20.5 million in Virginia-grown hardwoods during the next three years.

“This project is a great win for Virginia’s hardwood loggers and forestland owners,” Northam said in a statement. “Forestry continues to be an important pillar of communities across the commonwealth because industry leaders recognize the benefits of our abundant natural resources, extensive transportation network and unparalleled workforce. We thank Prolam for locating its first U.S. manufacturing facility in Southern Virginia and look forward to a long partnership with the company.”

Headquartered in Quebec, Canada, Prolam supplies major U.S. trailer manufacturers.

The Virginia Department of Agriculture and Consumer Services (VDACS) and the Virginia Economic Development Partnership (VEDP) worked with Patrick County and the Patrick County Economic Development Authority to secure the project. Northam approved a $100,000 grant from the Governor’s Agriculture and Forestry Industries Development Fund, which Patrick County will match with local funds. Funding and services to support the company’s job creation will be provided through VEDP’s Virginia Jobs Investment Program.

 

 

Shenandoah Growers taps ex-Starbucks exec as new CEO

Rockingham County-based indoor agriculture company Shenandoah Growers Inc. has appointed former Starbucks Inc. Chief Marketing Officer Matthew Ryan as the company’s new CEO. And Mike Buckley, former senior vice president of business for Postmates, has been hired as Shenandoah Growers’ chief financial officer, the company announced Wednesday.

Former Shenandoah Growers CEO Tim Heydon, who stepped down from his post after 20 years helming the company, will continue to be “fully engaged” with Shenandoah Growers in a strategic advisory role to the company’s board of directors, according to a news release.

Mike Buckley. Photo courtesy Shenandoah Growers
Mike Buckley. Photo courtesy Shenandoah Growers

Prior to working for Starbucks, Ryan served as head of brand management at The Walt Disney Co. He sits on the board of Kaiser Permanente and graduated magna cum laude from Harvard University. Buckley served as CFO for Nike before he was at Postmates. He received his undergraduate degree from Stanford University and also graduated from Harvard Business School’s General Management Program.

The leadership appointments follow the recent hires of lighting and plant biology expert Tessa Pocock as the company’s chief science officer and former Walmart executive Cameron Geiger as Shenandoah Growers’ chief operating officer.

“When I looked at the booming business of indoor agriculture, Shenandoah Growers stood out as the company with the strongest track record, and the best technical and biological know-how to transform its existing market-leading position into a long-term strategic advantage,” Ryan said in a statement. “My career has been shaped and defined by innovative, market-leading companies. Here, the opportunity for growth could be even greater, as Shenandoah Growers is uniquely positioned to deliver against the converging demand for affordable, high-quality and organic produce, and the need to grow it sustainably and reliably.”

Shenandoah Growers President Philip Karp said, “Matt is a proven leader and strategist with an impressive track record of building strong, competitively advantaged brands in roles at Starbucks and Disney. As Shenandoah Growers seeks to do the same in produce — scaling across many different crops, sales channels and geographies — Matt’s leadership will be invaluable.” He added that the company “is also incredibly fortunate to be retaining the deep institutional knowledge of our outgoing CEO, Tim Heydon. Tim’s vision and steady hand have guided the company’s growth for the past two decades. The strong position we hold today as both a market and technology leader are a credit to Tim, and we are so pleased that he will continue to be an integral part of our team as this journey continues.”

Founded in 1989, Shenandoah Growers provides organic herbs and leafy greens to more than 18,000 retailers nationwide. Billing itself as developing the nation’s largest indoor organic growing systems, the company specializes in indoor vertical farming using hydroponics, aeroponics and aquaponics.

Nestlé Purina PetCare to undertake $182M expansion in King William

St. Louis-based Nestlé Purina PetCare Co. will invest $182 million to expand its pet care products manufacturing facility in King William County, Virginia Gov. Ralph Northam announced Wednesday.

The factory expansion, which is scheduled to be completed by late 2023, will include a 138,000-square-foot buildout to increase manufacturing capacity for the company’s Tidy Cat litter products line. The project will also include adding 10,000 square feet of warehouse space. A company spokesperson said that the facility anticipates adding jobs when the expansion is closer to completion, but declined to give specifics.

“Nestlé Purina PetCare has been a vital contributor to King William County’s economy for more than two decades, and this major investment further solidifies its commitment to the community,” said Northam, who met with Nestlé CEO Ulf Mark Schneider at the company’s headquarters in Switzerland during the governor’s European international marketing mission in May. “With multiple operations across Virginia, Nestlé is an important partner to our commonwealth, and we look forward to supporting this global company and household brand in its next chapter of growth.”

Located in Virginia since 1997, Purina is King William County’s largest employer, with 240 employees at the King William plant. The expansion in King William, which is part of the company’s network of 21 existing manufacturing facilities across the United States, is part of a broader growth plan for Purina, which has recently announced new factories in other states. Purina is a division of Nestlé, which has its U.S. headquarters in Arlington and employs 1,000 workers across Virginia.

“The investment in Virginia provides an exciting opportunity to strengthen our operations in King William,” Purina Factory Manager Travis Gumbs said in a statement. “We are committed to delivering the innovative litter solutions cat owners trust, with a continued focus on safety and sustainability in our operations. We are proud to be part of the King William community and look forward to many more opportunities to make a positive impact for pets and people.”

The Virginia Economic Development Partnership worked with King William County to secure the project for Virginia. Governor Northam approved a $2 million Virginia Investment Performance Grant for the project.

 

Timber exporter building $1.1M facility in Suffolk

Kristi Corp. a global supplier of industrial raw materials for aluminum and steel metallurgical industries, will build a $1.1 million log load and fumigation facility in Suffolk, creating 10 jobs, Virginia Gov. Ralph Northam announced Tuesday.

The company will source 100% of its exports from Virginia logging companies. Virginia competed with North Carolina and Pennsylvania for the project, which will be located at 1326 Portsmouth Boulevard.

“Once again, the world-class Port of Virginia and our skilled workforce enabled our commonwealth to successfully compete for this new lumber exporting facility,” Northam said in a statement. “This project will benefit both the local economy and our forestry industry, and we look forward to partnering with Kristi Corporation as it grows in Suffolk.”

Headquartered in New Jersey, Kristi Corp. was founded in 2005 and has branches in Canada and India. The company exports logs, lumber and biomass materials from North America across the globe.

The Virginia Economic Development Partnership worked with the City of Suffolk, the Virginia Department of Forestry and The Port of Virginia to secure the project for Virginia. VEDP’s Virginia Jobs Investment Program will assist Kristi Corp. with its employee recruitment and training.

 

F-22 fighter jet training unit will relocate to Joint Base Langley-Eustis

The U.S. Air Force is relocating the branch’s only advanced training unit for F-22 Raptor fighter jets from Florida to Joint Base Langley-Eustis in Hampton, bringing some 2,300 people to the region, the Air Force confirmed to the Air Force Times newspaper on Wednesday, June 23.

“We are thrilled to welcome the F-22 Raptor formal training unit to our commonwealth,” Virginia Gov. Northam said in a statement released Friday. Northam and a bipartisan delegate of Virginia congressional representatives and General Assembly members had urged the Air Force to select Joint Base Langley-Eustis as the new home for the F-22 Formal Training Unit (FTU) after the unit was displaced from its home at Tyndall Air Force near Panama City, Florida, in 2018 after Hurricane Michael caused more than $5 billion in damages to the base. The unit had been temporarily stationed at Florida’s Eglin Air Force Base for the last few years.

The FTU will bring approximately 700 military and civilian personnel and contractors, along with approximately 1,600 dependents, to the Hampton Roads region. More than 30 F-22s and 16 training aircraft will be relocated to Joint Base Langley-Eustis, which also is home to the Virginia Air National Guard 192nd Fighter Wing.

“Home to a significant number of military installations with critical national security missions and operations, there is no place that welcomes service members more warmly than the Hampton Roads region. Langley-Eustis is the right choice, with the ideal environment to achieve the maintenance and supply efficiencies that are critical to successful F-22 squadron training,” Northam said. “This move is good for the Air Force and the Langley-Eustis community, and demonstrates that Virginia is best suited to host this mission and the next generation of air dominance fighter aircraft.”

In a joint statement, Virginia U.S. Sens. Mark Warner and Tim Kaine said, “After years of advocating alongside the Virginia congressional delegation, we’re pleased that the U.S. Air Force has confirmed what we already knew: Hampton Roads is the ideal location to permanently house the F-22 training squadron. We look forward to working with the U.S. Air Force and the Virginia Air National Guard to make sure the relocation process is a smooth one for the service members and their families that will now make the commonwealth their new home.”

Virginia Business wins national journalism awards

Virginia Business won two national journalism awards Wednesday during The Alliance of Area Business Publishers’ (AABP) 2021 Editorial Excellence Awards ceremony.

Virginia Business Publisher Bernie Niemeier placed gold in the Commentary category for his monthly OurView column. His winning columns included a July 2020 column, “It’s time to speak up,” which exhorted the business community to stand up against systemic racism and inequality. The other winning columns penned by Niemeier were a May/June 2020 piece about the need for government to regulate business and a September 2020 column about why federal antitrust legislation should be updated in light of Big Tech.

“This publisher doesn’t shout, but offers reasoned, thoughtful explanations for his viewpoints, taking the side of his community as a whole, not of any particular faction,” the judges said in their remarks for Niemeier’s gold award.

Virginia Business also received a silver award for Best Ancillary Publication category for the magazine’s 2020 Hampton Roads Business guide, overseen by Deputy Editor Kate Andrews.

Praising the special annual publication, the judges wrote, “Strong, efficient tables and graphics present facts in an accessible way and well-edited photographs enhance the content. Stories offer fascinating information about local business topics and about the community overall.”

The awards were judged by faculty members from the University of Missouri School of Journalism. The awards ceremony was held virtually as part of the AABP’s three-day annual conference.

Founded in 1979, AABP is a Norwalk, Connecticut-based nonprofit organization representing 70 regional and local business publications in the United States, Canada, Australia and Puerto Rico, with a combined circulation of more than 1.2 million business professionals.