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byline: Sydney Lake

Va. Beach logistics company to create 31 jobs

-based company Regulus Global LLC will add 31 employees and lease an additional 12,000 square feet in the city, the Virginia Beach Department of announced Tuesday.

“For the last nine years Regulus Global has been a rapidly growing business, executing a medical, expeditionary and national security business worldwide,” Regulus Global CEO Will Somerindyke said in a statement. “We do that proudly from our Virginia Beach headquarters, where we have the privilege to employ and support our local community — such as recently securing much-needed medical supplies for Sentara, VCU [and] Chesapeake General.”

Regulus Global provides procurement and logistics services for global defense, security, intelligence and humanitarian sector clients. The company currently employs 26 and leases 12,500 square feet at 1528 Taylor Farm Road in Virginia Beach, according to the Virginia Beach Department of Economic Development. The additional space will be located at 2641 Quality Court, approximately 3 miles from its headquarters.

“Warehousing and logistics are key areas where our community provides excellent opportunities in support of the Port of Virginia and other import and export activities,” Director of Economic Development Taylor Adams said in a statement. “We are pleased that Regulus Global has chosen to expand their operation in Virginia Beach to take advantage of the resources and assets we have here.”

The Virginia Beach Economic Development Authority will provide $46,500 in Economic Development Investment funding for job creation.

 

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$29.6M state grants to expand broadband in 11 localities

Nearly $30 million in Virginia Telecommunication Initiative (VATI) will be disbursed among five projects to expand access in 11 localities in the Northern Neck, Southwest and Southern Virginia and Botetourt County, Gov. Ralph Northam announced Tuesday.

The projects will connect more than 11,700 households, businesses and institutions to high-speed internet. VATI provides funding for broadband projects to underserved areas.

“Now more than ever, we must ensure that Virginians in every part of our commonwealth have access to reliable, high-speed internet,” Northam said in a statement. “With these grants, we will help bridge the digital divide in unserved communities and provide thousands of households and businesses with the connections they need to work, learn, and thrive.”

Funding will be disbursed among the following projects:

  • Cumberland Plateau Planning District Commission and Point Broadband, $16.28 million. Cumberland Plateau Planning District Commission will install 1,312 miles of fiber in the counties of Buchanan, Dickenson, Russell and Tazewell through a partnership with Point Broadband. It will provide access to 8,335 units, including 82 businesses. 
  • Northern Neck Planning District Commission and All Points Broadband, $10.28 million. Northern Neck Planning District Commission, in partnership with All Points Broadband, will construct a regional network in the counties of King George, Northumberland, and Westmoreland. The project will provide access to 1,767 units, including 31 businesses.
  • Botetourt County and Lumos, $1.36 million. Botetourt County, through a partnership with internet service provider Lumos, will extend its broadband network in the county. It will bring broadband access to 548 units, including 30 businesses.
  • LENOWISCO Planning District Commission and Scott County Telephone Cooperative, $1.23 million. LENOWISCO Planning District Commission, in partnership with Scott County Telephone Cooperative, will install 73 miles of fiber in Lee County, providing access to 679 total units.
  • Mecklenburg County and EMPOWER Broadband, $449,381. Mecklenburg County will install more than 22 miles of fiber with EMPOWER Broadband. The project will connect 414 units, including 12 businesses.

VATI is administered by the Department of Housing and Community Development. Northam in his 2020 budget dedicated nearly $50 million in VATI funding. This application year, VATI received 45 applications requesting more than $105 million in funding.

 

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Unemployment shows minimal improvement in Va., U.S.

Virginia’s seasonally adjusted rate rose by less than 1% between November 2020 and December 2020, according to the Virginia Commission, and the commonwealth’s 4.9% December unemployment rate for December was 2.2% higher than in December 2019.

Early predictions from Virginia Commonwealth University and Arizona State University economists show that U.S. employment rates have changed very little in the last two months.

In Virginia, the labor force stayed steady at 4.28 million between November 2020 and December 2020, while the number of employed Virginians fell by 3,388 to 4.08 million. Non-agriculture rose by 800 and the private sector gained 7,000 jobs. The public sector lost 6,200 jobs, however. 

At the onset of the pandemic last spring, U.S. employment fell by 14% among working age adults. From early December 2020 to early January 2021, employment stayed stagnant, according to the Real-Time Population Survey conducted by VCU economics professor Adam Blandin and Arizona State economics professor Alexander Bick. The Real-Time Population Survey closely follows the methodology of the U.S. Bureau of Labor Statistics’ Current Population Survey and covers the same time period, but is released two weeks earlier. The survey is conducted in collaboration with the Federal Reserve of Dallas.

“This was a historic loss for the , both in its size and its speed,” Blandin said in a statement. “Fortunately, employment also rebounded quickly in the summer and fall. From April to October, employment increased by over 10%, meaning that the economy quickly recovered about two-thirds of lost jobs.”

However, Blandin says, “since October, employment has stopped recovering, and has actually declined. We saw a continuation of this trend in January. This suggests that the early rapid was only a partial one, and many workers who were working prior to the pandemic are still struggling to find work.”

In Virginia, the largest monthly job gains during December were in trade and transportation (adding 5,600 jobs) and manufacturing (adding 4,400 jobs), according to the VEC. The construction industry in Virginia also gained 1,900 jobs. The largest decreases were reported in government and leisure and hospitality.

Of the 11 major industry divisions in Virginia, 10 reported major losses in December 2020 compared with December 2019. Leisure and hospitality was down by 72,300 jobs at the end of the year, while education and health services were down by 39,100 jobs, according to the VEC. The only region in Virginia to net a positive job gain between 2019 and 2020 was Staunton/Waynesboro, which added 800 jobs. Northern Virginia saw the largest year over year drop — losing 66,700 jobs in 2020.

The Real-Time Population Survey for the week of Jan. 10 through 16 also shows that only approximately 60% of Americans are still working for the same employer as at the onset of the pandemic, with 15% not working and 25% working for a new employer.

The survey did show that earnings have recovered for many , with about half of the respondents reporting they were earning the same amount at the start of the pandemic, and approximately 20% said they were earning more. 

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McLean contractor lands $87M Navy task order

-based Science and Corp. announced Monday it has received an $87 million to help the Naval Surface Warfare Center develop a vertical launching system and training equipment for the naval base in Port Hueneme, California.

Under the potential five-year task order, Alion will perform research, development, test and evaluation work to help the modernize its MK 57 launcher platform, interface test sets and in-service engineering agent live, virtual and constructive (LVC) tools.

“Alion’s expertise in sensors, weapons systems, obsolescence redesign and more than 25 years developing and providing live, virtual and constructive (LVC) services make this an outstanding partnership for success,” Alan Dietrich, Alion senior vice president and general manager of the Intelligence, Surveillance and Reconnaissance (ISR) Group, said in a statement. “Alion’s rapid prototyping expertise speeds the implementation and deployment of these mission critical systems to improve battlefield situational awareness and weapon systems effectiveness for warfighters.”

Alion will also analyze current naval systems and recommend approaches for architecture under the task order.

Founded in 2002, Alion specializes in training, big analytics and . The company has more than 55 offices in the U.S. and more than 25 research labs.

 

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Norfolk consultancy names two VPs

-based government management and IT firm ARDX announced last week it has hired Mary Shaffran as vice president of service delivery and Jennifer Stone as vice president of business development.

With more than 20 years of experience, Shaffran has held leadership positions with Northrop Grumman Corp., ASRC, ProSphere, Science Applications International Corp. (SAIC) and most recently served as vice president of federal civilian solutions at IntelliDyne. She earned her bachelor’s degree in political science from Converse College and her master’s degree in public administration from the University of Georgia.

Stone, who has more than 21 years of experience, has previously worked with General Dynamics Corp., IBM, Accenture and Gartner. She most recently served as vice president of growth, military and veterans health with GovernmentCIO. Stone earned her bachelor’s degree in psychology from the University of Maryland University College, a master’s degree in public health from Columbia University, a master’s degree in business administration and a master’s degree in science management from the University of Maryland University College.

“I am thrilled to welcome Mary and Jennifer who bring a wealth of experience and passion to solving today’s health care complexities,” ARDX founder, President and CEO Angela D. Reddix said in a statement. “Their deep-rooted knowledge within the health care sector is pivotal as ARDX expands our footprint.”

Founded in 2006, ARDX provides consulting focused on population health, payment reform and patient-centered care and outcomes.

 

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Arlington biotech company names CFO

Regenerative tissue producer Kerecis, which has its U.S. headquarters in , announced last week it has named Mike Cadigan as its chief financial officer.

With 25 years of experience, Cadigan was most recently the managing partner of Cadigan Capital, where he previously advised Kerecis since 2017. Kerecis was founded in Iceland in 2013 and established its U.S. headquarters in 2016. 

“Mike has extensive experience in corporate finance, development and investment for both emerging and mature companies,” Kerecis founder and CEO G. Fertram Sigurjonsson said in a statement. “His leadership and insight will be invaluable as we accelerate our growth and drive our business to the next level.”

Cadigan will oversee the company’s finances and lead corporate development activities.

“I am drawn to the Kerecis vision for improving health outcomes for its patients and its embrace of sustainability,” Cadigan said in a statement. “Its value-from-waste position saves lives and generates revenue with products that are kind to the environment.”

Cadigan earned his bachelor’s degree in economics and his master’s degree in business administration from the University of California, Irvine.

The company uses fish skin and fatty acids to create cellular therapy and regenerative tissue products. In 2019, Kerecis acquired Swiss life-science company Phytoceuticals AG, which has since changed its name to Kerecis AG.

 

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Washington Football Team is first NFL team to partner with sports betting company

The -based announced Monday a partnership with company Group to provide betting across the state. It’s the first NFL team to partner with an online sports bookmaker. 

Through the partnership, which was approved by the last week, FanDuel will serve as the operational partner for a betting permit held by the Washington Football Team. The Virginia General Assembly legalized last year. The industry in Virginia is regulated by the Virginia Lottery, which also approved permits for DraftKings and BetMGM in recent days. 

“We’re honored to partner with an iconic sports franchise, and we plan to deliver the most fan-focused, and secure, mobile sports betting experience to the passionate sports fans of Virginia,” FanDuel CEO Matt King said in a statement.

Under the partnership, FanDuel will also have stadium signage at FedExField and offer “game day experiences” such as a special section of the stadium.

“When this truly unique opportunity presented itself, it was a natural fit to strategically align with our long-time partner, FanDuel, as we knew they’d establish a best in class sports betting marketplace, grounded by innovation and consumer protection,” Scott Shepherd, senior vice president of corporate partnerships and hospitality for the Washington Football Team, said in a statement. “We’re very excited for all this groundbreaking partnership will offer our valued fans throughout the commonwealth of Virginia as part of their game day experience.”

 

 

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NYC investment firm acquires controlling interest in Reston tech startup

New York City-based Tracker Capital Management LLC announced Monday that one of its affiliates has acquired a controlling interest in -based tech startup Presage Security.

Financial terms of the transaction were not disclosed.

Presage works to apply and advanced mathematical processing to video imagery analysis for , security and authenticity verification.

“Tracker Capital’s investment and partnership will significantly enhance our ability to deliver innovative solutions to our customer base,” Presage founder and CEO Mark Oliver said in a statement. “Tracker Capital brings extensive expertise in our target market segments and together, we will be able to successfully scale our enterprise to meet the growing needs of our customers.”

Tracker Capital invests in emerging tech companies at various stages in several markets.

“With its innovative and widespread applicability, we believe there are significant opportunities ahead for the company,” Tracker Capital Managing Director David Robertson said in a statement. “We look forward to working with Mark and the team to help Presage achieve its vision as the market leader in video analysis.”

Lowenstein and Sandler LLP served as legal adviser to Tracker Capital for the transaction.

 

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Va. Community Capital president, CEO to retire this year

-based (VCC) announced last week that President and CEO Jane Henderson will retire this year after four decades in the industry. 

Henderson has led VCC, a community development financial institution, since its 2006 inception. She has spent 29 years in community development finance.

VCC has not yet released a specific date for Henderson.

During Henderson’s tenure, VCC has leveraged a $15 million state investment into nearly $800 million in public and private investments focused on community development and affordable housing. The organization has created almost 8,000 and financed nearly 1,000 projects, including construction of the William Byrd Senior Apartments in Richmond.

“In my experience, when innovative, compassionate focus on blending capital from different sources to create positive impacts instead of only profits, neighborhoods and economies can change and grow,” Henderson said in a statement. “Disinvested communities experiencing blight and poverty have newfound access to homeownership opportunities and economic prosperity.”

Henderson is a graduate of Gettysburg College and St. Joseph’s University and served as the director of community development at Wachovia and as chair of the Federal Reserve of Richmond’s advisory board for eight years.

VCC will use recruiting firm Phillips Oppenheim to begin a nationwide search for a new leader, which the organization anticipates will take four to six months.

 

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Va. Beach-based company to acquire pet supply chain for $700M

-based franchise business operator Franchise Group Inc. announced Monday it will acquire Livonia, Michigan-based Pet Supplies Plus for approximately $700 million.

The all-cash transaction is expected to close in March. The Pet Supplies Plus chain was founded in 1988 and sells pet supplies and services at its more than 500 locations, almost 60% of which are franchised. It currently has a backlog of 185 new locations and also provides delivery and pickup for its products.

“We look forward to welcoming Pet Supplies Plus, its management team, employees, franchisees and neighbors to Franchise Group when this transaction closes,” Franchise Group President and CEO Brian Kahn said in a statement. “PSP adds another franchise concept with strong unit economics, diversification into an economically resilient and secularly growing pet industry and a brand that has and will continue to experience robust unit from its franchise system.”

Pet Supplies Plus estimates 2020 systemwide revenue as $1.2 billion. Franchise Group in 2019 reported $2.1 billion in revenue and focuses on buying and investing in franchises and franchise-able businesses.

“The additional scale and diversification that PSP will afford Franchise Group is expected to immediately lead to lower costs of capital and expanded free cash-flow generation,” Kahn said in a statement.

The Franchise Group last year acquired Buddy’s Home Furnishings, The Vitamin Shoppe, Sears Outlet and American Freight. The company has also entered into commitments arranged by J.P. Morgan, Citizens and Credit Suisse for $1.3 billion in new term loan credit facilities to refinance the company’s term loan for Buddy’s Home Furnishings, American Freight and Liberty Tax businesses and provide financing for the Pet Supplies Plus transaction.

Riley Securities served as financial adviser and Willkie Farr & Gallagher LLP served as legal counsel to Franchise Group. Pet Supplies Plus used Pipe Sandler, North Point and Baird as financial advisers and Kramer Levin as legal counsel.

 

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