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The Carlyle Group to take majority stake in Henrico-based insurance broker

The Carlyle Group has entered an agreement to acquire a majority interest in The Hilb Group, a rapidly growing Henrico County-based insurance broker.

Financial details of the deal were not disclosed.

The Carlyle Group is a Washington, D.C.-based global investment firm with $223 billion in assets under management as of June 30.

Founded in 2009, Hilb has more than 900 employees working in 91 offices through the country. It has been ranked as one of the nation’s fastest-growing companies by Inc. magazine and one of the top 10 fastest-growing brokers by Business Insurance magazine.

Since 2015, Hilb has been a portfolio company of Abry Partners, a Boston-based private equity firm. Brent Stone, an Abry partner, said Hilb’s annual revenues have increased dramatically during the past four years and the brokere completed more than 60 acquisitions during that time.

Hilb that, under the Carlyle agreement, its existing management team and employees are expected to remain significant company shareholders.

in a statement, Richard Spiro, Hilb’s CEO, said that the broker has “a rich pipeline of partnership opportunities” and expects to continue expand under Carlyle.

“This investment by Carlyle is a strong endorsement of our growth strategy and represents the next exciting chapter for Hilb,” he said. “Carlyle's additional capital and resources will significantly benefit our company and associates as we grow our business organically and through targeted M&A opportunities.”

In another statement, John Redett, managing director and co-head of Carlyle Global Financial Services, said his firm has “long admired the Hilb franchise and are extremely impressed with what Ricky Spiro and the Hilb management team have accomplished during the past several years.”

Equity capital for Carlyle’s investment will come from Carlyle Partners VII, an $18.5 billion fund that focuses on buyout transactions in the U.S., and Carlyle Global Financial Services Partners III LP, a dedicated financial services buyout fund.

The deal is expected to be completed before the end of the year, subject to customary closing conditions, including regulatory approvals.

Former Gov. Gerald L. Baliles dies

Former Gov. Gerald L. Baliles died Oct. 29 at the age of 79.

Baliles, a Democrat, served as governor from 1986-90. He entered palliative care in September after a long battle with cancer.

Baliles' tenure is perhaps best remembered for a massive transportation funding bill passed by the General Assembly during a special session in 1986. The legislature would not pass another comprehensive transportation funding bill until 2013.

In a statement, Gov. Ralph Northam praised Baliles, saying the former governor “understood and valued the role government can play in improving citizens’ lives. He transformed Virginia’s transportation infrastructure, signed Virginia into the Chesapeake Bay agreement under which we still operate today, and focused on expanding access to higher education, among many other accomplishments.”

Northam also said that Baliles “promoted civil discourse, and was the epitome of a true public servant.”

U.S. Senator Tim Kaine, also a former Virginia governor, called Baliles “one of the most accomplished governors of the 20th century.”

In addition to improving the commonwealth’s transportation system, Kaine said in a statement that Baliles “pushed environmental policies [with the understanding that] economic growth and conservation go hand-in-hand, and led unprecedented international missions that laid the groundwork for Virginia to become the global trade hub it is today.”

Retired Virginia Chamber of Commerce President Hugh Keogh directed Virginia’s economic development efforts during Baliles’ administration.

Keogh said the former governor had “an enormous impact in raising the visibility of economic development in the commonwealth and around the nation and making Virginia a star.”

Baliles “thoroughly enjoyed selling Virginia in the global economy,” Keogh said. “He got right into prospects’ mindset and enjoyed telling them about the advantages of Virginia as a business location.”

In an interview with Virginia Business in 2016, Baliles said trade missions were a high priority during his tenure, resulting in foreign businesses announcing more than 100 new ventures in the commonwealth, representing investments of $650 million to $700 million.

Baliles also focused on the growth of Virginia exports, which accounted for 25% of the commonwealth’s economic growth in 1989, the last full year of his term.

After Baliles left office, he practiced law, largely focusing on aviation and international law. He later became director of the Miller Center at the University of Virginia, which specializes in presidential scholarship and public policy. Baliles retired from the Miller Center in 2014.

Survivors include his wife, Robin; his two children, former Richmond City Council member Jon Baliles and Laura Baliles Osberger; his stepdaughters, Katherine Stone Walsh and Danielle Deal Hudak; and four grandchildren.

State flags will be flown at half-staff for 30 days in Baliles' memory.

From the Virginia Business archives: Former governor recalls the issues of 1986

https://virginiabusiness.com/news/article/1986-versus-2016

 

 

Hilb Group acquires New York agency

The Hilb Group LLC, an Henrico County-based insurance broker, continued its expansion with the acquisition of Avanti Associates Ltd. in New York state.

With locations in Armonk and Pelham, New York, Avanti includes Associated Insurance Agency of Westchester Inc., Comprehensive Insurance Brokerage Inc. and Bruce Farnham Associates Ltd. The deal became effective Oct. 1.

Avanti is a full-service agency providing personal and commercial insurance as well as life, health, disability, employee benefits, pensions and estate planning.

The agency will continue to be led by John D’Amato, Ann Marie Papa, Anthony Villani and Peter O’Brien.

The Hilb Group now has more than 85 offices in 21 states. The middle-market insurance broker is a portfolio company of the Boston-based private equity firm Abry Partners.

Newport News building sold for $3.75 million

Solo Inc. has bought a 64,264-square-foot building in Newport News for $3.75 million.

The commercial real estate firm Cushman & Wakefield | Thalhimer reported the sale of the office/warehouse building 201 Enterprise Drive.

Solo plans to occupy the building, which sits on 10.7 acres. The company makes sprayers, mist blowers, air blowers and cut-off saws plus parts and accessories.

The seller was DCD-201 Enterprise LLC.

Clay Culbreth of Cushman & Wakefield | Thalhimer handled the sale negotiations on behalf of the purchaser. 

William W. Hamner Jr., president and COO of Hamner Development Co., handled the negotiations on behalf of the seller.

Downtown Roanoke building sells for $3.1 million

The former First Federal Building in downtown Roanoke has been sold for $3.1 million.

The Roanoke-based Poe & Cronk Real Estate Group said the 48,000-square-foot office building on the corner of Church Avenue and First St. SW was bought by Kalyan Hospitality.

Constructed in 1958, the building served as the headquarters of First Federal Savings and Loan. The structure also has been used by Valley Bank and BNC Bank, and it is currently occupied by Pinnacle Bank.  Next year, Pinnacle plans to relocate to a newly constructed building on Campbell Avenue.

Poe & Cronk said Kalyan Hospitality is exploring options for the property as a downtown hotel or office space.

The building was marketed for sale by Dennis Cronk, Matt Huff, and Stephen Pendergrass of Poe & Cronk.

September home sales up in Loudoun, Fairfax

Home sales were a mixed bag in the Northern Virginia region in September, according to the Long & Foster Real Estate Market Minute Report, with some localities seeing more sales and others fewer.

Loudoun County saw the biggest increase, racking up 17% more home sales than last September, and Fairfax County saw a 13% year-over-year increase. Arlington County and the city of Alexandria, however, saw decreases in September sales, with a 13% drop in Arlington and a 10% decline in Alexandria.

Sales in Prince William County increased by 8% compared with September 2018.

Arlington’s median sale price rose 15% to $590,000 last month, up from $515,000 a year ago, a boost likely helped by Amazon.com Inc.’s forthcoming East Coast HQ2 headquarters and low interest rates, said Larry “Boomer” Foster, president of Long & Foster Real Estate. He noted that more people are refinancing or buying homes so as not to miss out on low rates.

Inventory of homes in Arlington and Alexandria also continue to shrink, with only about 300 new listings each in September. In all five localities, house inventory fell considerably from September 2018, with Alexandria seeing a 54% decrease and Arlington at 52%.

VCU’s Massey Cancer Center names new director

Dr. Robert Winn, an expert in lung cancer and community-based health care, has been named director of the Massey Cancer Center at Virginia Commonwealth University, the university announced Friday.

Winn comes to Richmond from the University of Illinois Cancer Center, where he served as director, and as associate vice chancellor of health affairs for community-based practice at the university’s hospital and health science system.

“Dr. Winn is a passionate leader with vision, compassion and a commitment to service,” said Dr. Marsha D. Rappley, senior vice president for health sciences at VCU and CEO of VCU Health System.

At UIC, Winn oversaw research and clinical activities at 13 federally qualified health centers and created an integrated health care delivery and research system, according to VCU. He is a pulmonologist with a medical degree from the University of Michigan Medical School and received training at the University of Colorado, where he later served in leadership roles at its Health Sciences Center and School of Medicine.

Winn replaces Dr. Gordon Ginder, who has served as Massey’s director for 22 years. He starts Dec. 2.

General Dynamics lands $325M U.S. emergency telecomm contract

A division of Falls Church-based defense contractor General Dynamics will provide priority telecommunications services to the U.S. Department of Homeland Security under a contract worth up to $325 million with federal Cybersecurity and Infrastructure Agency's (CISA) Emergency Communications Division (ECD).

CISA, which falls under the purview of Homeland Security, was created in November 2018 as a standalone federal agency to reduce and eliminate threats to the nation's critical physical and cyber infrastructure assets.

General Dynamics Information Technology (GDIT) will provide services allowing Homeland Security to provide priority voice, data, video and information services in order to maintain continuity of government operations during natural emergencies, acts of terrorism and war.

GDIT has provided support to the federal government's priority telecommunications services program for the last 25 years, providing critical services so that hundreds of thousands of registered users, including the White House, are able to communicate during times when communications systems are congested by increased traffic or physical damage. The new contract will allow GDIT to continue its support work for the program, including integrating 5G cellular network technology.

Delivery van manufacturer to create 700+ jobs in Pittsylvania

Morgan Olson LLC, North America’s largest manufacturer of walk-in delivery vans, will take Ikea’s place in Pittsylvania County, Gov. Ralph Northam announced Friday. The move is expected to create 703 new full-time jobs on the company's truck assembly line, which would make Morgan Olson the largest private employer in Pittsylvania.

Morgan Olson plans to invest $57.8 million in the 925,000-square-foot plant currently owned by Swedish furniture maker Ikea. The company expects to begin hiring in May, according to Danville city spokesperson Arnold Hendrix.

“Securing a project of this magnitude is a big win for Danville-Pittsylvania County, Southern Virginia and the entire commonwealth,” Northam said in a statement. “Not only will Morgan Olson ensure the future of this plant for many years to come, they will also provide valuable new jobs to hundreds of hard-working citizens of this region.”

Representatives from the Michigan-based company said “this would be a rapid process,” with the first truck going off the assembly line by mid-2020, said Alexis Ehrhardt, president and CEO of the Danville Pittsylvania County Chamber of Commerce. The new jobs, Ehrhardt said, are expected to be full-time and would pay well.

While she couldn’t give exact figures, Ehrhardt said she heard that Morgan Olson’s average salaries would be higher than Pittsylvania’s median household income, which was $41,824 in 2017. 

Ikea is set to shut down its Cane Creek Centre facility in December, with an expected loss of about 300 jobs, but the governor’s office says that current Ikea employees will receive priority during Morgan Olson’s hiring process. Many of the Ikea assembly line jobs are analogous to those that Morgan Olson will hire for, Ehrhardt said, adding that the company’s representatives said they are committed to fully training local employees, including those who had never assembled a truck.

According to the city of Danville, the company also intends to purchase 188 acres of surrounding property owned by the Danville Pittsylvania Regional Industrial Facility Authority to create a storage yard for finished trucks and vans. The Cane Creek Centre industrial park is a collaboration between Danville and Pittsylvania.

Founded in 1946, Morgan Olson produces aluminum step vans that deliver online purchases across the continent. In 2003, Morgan Olson was purchased by J.B. Poindexter & Co. Inc., a diversified manufacturing company headquartered in Houston.

Morgan Olson is eligible for several state grants, including a $7 million custom performance grant from the General Assembly’s Major Employment and Investment Project Approval Commission, to be paid post-performance. The Virginia Tobacco Region Revitalization Commission has approved a $1.195 million grant, and the company is also eligible for state tax credits, including through the Virginia Enterprise Zone Program.

A new state workforce initiative, the Virginia Talent Accelerator Program, created by the Virginia Economic Development Partnership and the Virginia Community College System, will support job creation at the plant, with free recruitment and training services specifically customized to the company’s products, processes, culture and other specifications. Morgan Olson is the first company to benefit from the program, which was launched this year, according to the governor’s office.

Ehrhardt said that she hopes other manufacturers in the region will be able to work together and capitalize on opportunities to gain new business connected with Morgan Olson. “I think we have a track record of success locally in building a supply chain.”

Should you spend money now or save?

Consumers across Virginia struggle with this question daily: “Do I buy this [insert expensive item you’ve had your eye on for months] now or wait to see if it goes on sale? Or wait to see if I get a bonus?” A recent consumer sentiment survey by Roanoke College shows consumers are leaning toward spending now instead of later because of uncertainty about prices increasing in the future.

Increased tariffs are driving up prices on consumer goods. On Sept. 1, the government imposed a 15% tariff on $109 billion in Chinese imports including footwear, clothing and consumer tech products like speakers, TVs and printers. The tariff increase could potentially rise again in the coming months if the disagreements between the two countries are not resolved. The next possible price hike would happen in December and include more consumer goods like smart phones, toys and video game consoles just in time for the big holiday season.

More than half (58%) of Virginia consumers surveyed believe that now is a good time to buy large durable items because of both rising income and concerns that prices will rise with tariffs. More than three quarters (81%) believe prices are going to increase in the next five to 10 years. Although we cannot predict whether or not these tariffs will in fact rise or in turn be lowered, some financial institutions have warned their clients that the tariff war could cost households approximately $1,000 annually.

Not sure about how you and your family should navigate these increasing prices and prepare your finances? Here are some tips and recommendations for why spending now could actually save you money down the road:

1.      Make sure you have saved before you spend. Even though you should be considering making large purchases now before prices may rise, be sure to have money set aside for emergencies and refrain from using that money for these items. It's recommended that a family should have at a minimum three months’ worth of living expenses in your emergency fund.

2.      Price vs. quality. In the case of purchasing large items, make sure you are purchasing these items based on quality. Ensure quality items such as a washer and dryer, kitchen appliances or a car include long life spans and are energy efficient to last longer and will not need to be replaced soon after buying. 

3.      Avoid impulse purchases. With any purchase, especially big-ticket items, employ the “24-hour rule.” This rule is important to follow for any purchase and allows you to consider the item and decide whether it is still a good idea to buy after waiting 24 hours. You can come out of this waiting period confident that it is a solid purchase or that you should wait.

Be sure to follow these three tips when considering making large purchases in the midst of economic uncertainty or visit your local bank to discuss your finances with a knowledgeable financial adviser. As always, do not purchase the first big ticket item you come across or actually do not need. Discuss financial decisions with your partner and make sure the purchase is the correct one for your needs and future.

Maria Tedesco is the president of Atlantic Union Bank, the first statewide Virginia-based regional bank in over 20 years. Recently, Atlantic Union Bank was named No. 1 in customer satisfaction with retail banking in the Mid-Atlantic region by J.D. Power. In 2012 and 2017, Tedesco was named one of the most powerful women in banking by American Banker.