Business 2017: A year of mergers, acquisitions and preparations for expansion
Observer-Reporter
EQT headquarters in Pittsburgh
Nick DeIuliis
Pat McCune
Mark Marietta/For the Observer-Reporter
The Meadows Casino
Celeste Van Kirk/Observer-Reporter
Perryman Co., a producer of titanium for a variety of industrial applications, is headquartered on Vandale Drive in Houston.
Trista Thurston/Observer-Reporter
Shown is the AGRiMED’s entrance on Thomas Drive in Cumberland Township.
Observer-Reporter
Printscape Arena at Southpointe is operating safely and efficiently through the coronavirus pandemic.
If there were an appropriate term to sum up the business activity that predominated Washington and Greene counties in 2017, it would be “M&A.”
From energy to banking and gaming to a legacy ice arena, mergers and acquisitions were in full swing in the past year, with each having an impact locally, regionally or nationally. Additionally, a major land acquisition by a specialty metals producer and an approval to build a medical marijuana facility – one of the first in Pennsylvania – also were major business stories in the year just completed.
EQT buys Rice Energy
With the Nov. 13 completion of its $6.7 billion acquisition of Rice Energy, Pittsburgh-based EQT became the largest natural gas production company in the U.S. “With the closing of the transaction, we are combining two of the leading operators in the Appalachian Basin to create an even stronger company that is positioned to deliver greater returns to shareholders through operating efficiencies and improved overall well economics, “said”EQT CEO Steve Schlotterbeck.
Consol’s historic spinoff
At the end of November, CNX Resources completed the spinoff of Consol Energy Inc., formerly named Consol Mining Corp., creating two publicly-traded companies – a natural gas exploration and production company and a coal company, both of which will remain headquartered in Southpointe.
“Today’s historic announcement is the culmination of a strategy over a decade in the making,” said CNX Resources CEO Nicholas J. DeIuliis. “Our objective was to once again transform a 150-year-old institution, which owns and operates the best natural gas and coal assets in the world.
“The E&P company is now one of the premiere pure-play natural gas E&P companies with a significant Marcellus and Utica Shale legacy acreage position, low-cost structure, and stacked pay opportunities, while the coal company holds some of the best coal assets in the world and is positioned to dominate the coal space for years to come.”
CB Financial Services acquisition
Carmichaels-based CB Financial Services Inc., the holding company for Community Bank, on Nov. 16 announced its $49 million acquisition of Wheeling-based First West Virginia Bancorp Inc., whose retail arm, Progressive Bank, includes seven West Virginia branches and one in eastern Ohio. “Many of us have long ties with Wheeling and the Ohio Valley,” said CB Financial CEO Barron (Pat) McCune Jr., who said the merger will enable the combined banks “to offer more service, better products and additional locations for our new customers.”
The Meadows operator sold
On Dec. 18, Las Vegas-based Pinnacle Entertainment – which had operated The Meadows Racetrack & Casino since September 2016 following the North Strabane Township gaming and entertainment venue’s sale in late 2015 by Cannery Casino Resorts to Wyomissing-based Gaming and Leisure Properties – was itself acquired by Penn National Gaming, also based in Wyomissing.
When the $2.8 billion deal, announced Dec. 18, closes in the second half of 2018, Penn National will own The Meadows and a dozen other Pinnacle-operated properties in the Midwest and Southeast, adding to its status as one of the larger regional casino owners in the country.
Perryman buys
ex-Caterpillar plant
On Nov. 15, the titanium producer with a global reach said it was acquiring the former industrial site for an undisclosed amount, which is just across the street from its Houston headquarters, with plans to turn the 35-acre production facility and administrative building into an advanced manufacturing site. Perryman also announced in late November the purchase of two additional furnaces for its California Technology Park melt shop that will double its melting capacity in anticipation of additional demand from its aerospace customers. At the time of the property purchase from Caterpillar, CEO Frank Perryman Jr. said he was continuing a vision of growth for his company, which also is a major supplier of titanium for the medical industry.
“The vision for Perryman to maintain sustainable growth has been in place since 2008,” he said. “At its core is the commitment to meeting the needs of our customers and to be ready to support them in advance of their requirements.” With the acquisition of the Caterpillar site, he said, “Perryman will be in position to support its current and future growth for the next 10 to 15 years.”
Growing in Greene
Greene County was one of 12 places where a medical marijuana growing operation will be built in Pennsylvania. AGRiMED secured the license in June to build the facility on a 61-acre site in Cumberland Township, which was supposed to be operational by this month. The company’s application received the highest score from the state Department of Health in the evaluation process used to award the licenses out of 177 applications.
Southpointe ice arena acquired
For the first 22 years of its life, Southpointe’s Iceoplex was a practice facility for the Pittsburgh Penguins, as well as a regional venue for various sports instructional classes and youth and adult leagues for hockey and other sports before becoming beset by financial problems. After its purchase in February by Chevy Chase, Md.-based Blackstreet Capital Holdings, the facility gained a new lease on life and a new name, Printscape Arena at Southpointe. Blackstreet’s Black Bear Sports Group focuses on turning around financially troubled arenas that operate in National Hockey League franchise strongholds. In addition to continuing the slate of hockey and ice skating as well as numerous other turf sports offerings, the new owners are planning trade shows, concerts and mixed martial arts fighting competitons, projecting that the venue will draw 800,000 people annually from a 30-mile radius.
Despite its out-of-town ownership, the arena maintains strong local ties. In addition to locally based Printscape’s purchase of naming rights, it also attracted a Bubba’s Burghers and Beer restaurant in place of the former BLVD Pub and Kitchen.