Change happens. And in 2011, four substantial mergers and acquisitions (M&As) took place in Henrico, gently reshaping the County’s financial landscape – for the better. In the ring for Henrico County: the Henrico Economic Development Authority (H-EDA).
“Facilitating M&As is not part of our core responsibilities, but we do get involved as necessary because one of our primary missions is the retention and growth of existing businesses in the County,” says Toney Hall, Director of Marketing for the Henrico Economic Development Authority.
2011 saw the following transactions take place in Henrico County: Smiths Interconnect purchased PDI (Power Holdings, Inc.), New Mountain Capital became a majority stakeholder of SNL Financial, C.F. Sauer sold its Dean Foods margarine operations to Bunge North America, and Fareva purchased the former Pfizer manufacturing plant.
“The major M&As that happened within the County this year were reflective of the economic times, in some respect,” says Hall. “We have seen scenarios across the country where some companies are transitioning toward M&As as a strategy for financial stability.”
The search for product diversification, new markets and lower fixed costs also drives the ultimate decision to unite or purchase. In the case of Smiths Interconnect’s purchase of PDI (Power Holdings, Inc.), the transaction was part of Smiths Interconnect’s overall strategy to gain a competitive advantage and extend its geographic reach. Geographic location was also a key reason international manufacturing firm Fareva found Pfizer’s 470,000-square-foot Henrico plant an attractive choice for its first facility in the U.S.
“Our job is to bring the right people to the table at the right time. That could be appropriate business leaders or local or state government officials,” says Hall. And in the case of Fareva’s Pfizer plant acquisition, that meant a call to the Governor’s office to negotiate a substantial investment package to save hundreds of jobs. (To learn more, read Henrico-Based Pfizer Plant Acquired by Fareva.)
Transactions like these don’t always bring good news, but that hasn’t been the case in Henrico. Over 600 jobs have been retained, and new ones are expected to materialize. The companies involved have more strategic resources (New Mountain Capital), are adding complementing technologies to their business arsenal (Smiths Interconnect), extending geographic reach (Fareva), and are now positioned to better serve their existing customers (Bunge North America).
Seems growing and developing your business in Henrico County is a matter of good business sense!
2011 Henrico Business Mergers & Acquisitions
Smiths Interconnect purchased PDI
New Mountain Capital became a majority stakeholder of SNL
Bunge North America purchased C.F. Sauer’s Dean Foods
Fareva purchased the former Pfizer plant located in Henrico
