This report is compiled from company releases, business journals and newspapers from around the state. If you have an item for these listings,
mail it to:
Catherine Leitch
Virginia Business
411 East Franklin Street, Suite 105
Richmond, Va. 23219

or e-mail it to ForTheRecord@va-business.com, or fax it to (804) 649-6311.

Mergers & Acquisitions
PSINet plans to acquire
Transaction Network Services

Herndon-based PSINet, an Internet service provider, plans to acquire Reston-based Transaction Network Services, an electronic commerce services company, in a $720 million cash-and-stock deal. Both of the firms were founded in the past decade and are within one-half mile of each other.

The $720 million purchase price consists of $351 million in cash and up to 7.8 million PSINet common shares. Transaction Network Services shareholders may choose to receive cash, PSINet stock or both. According to a company statement, shareholders representing about 15 percent of Transaction Network's outstanding shares have agreed to vote in favor of the PSINet acquisition.

The combined company would employ 2,800 people and generate $1 billion in annual revenues.

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AES Electric, a subsidiary of the Arlington-based power company AES Corp., reached an agreement with London-based National Power to acquire the Drax Power Station in northern England for about $3 million.

BSC Homecraft, an Emporia-based floor, roof and panel builder, was acquired by Toll Integrated Systems, a Huntingdon Valley, Pa.-based home builder and subsidiary of Toll Brothers Inc., for $6.6 million. Toll plans to retain all 50 of BSC's employees and hire 100 more. The company also plans to expand BSC's existing 11-acre facility.

Chesapeake Display and Packaging Co., a Richmond-based packaging manufacturer and subsidiary of Chesapeake Corp., plans to acquire Consumer Promotions International Inc., a display manufacturer based in Mount Vernon, N.Y. Terms were not disclosed.

Chesapeake Packaging Co., a packaging manufacturer that is a subsidiary of Richmond-based Chesapeake Corp., plans to acquire a corrugated container plant currently owned by Georgia-Pacific Corp. The plant is near Henderson, N.C. Terms were not disclosed.

Diamonstein & Staley and Patten, Wornom & Watkins and the Law Offices of H. Duncan Garnett Jr. merged to create a new firm, Patten, Wornom, Hatten & Diamonstein. The 23-attorney firm will operate in Newport News. Terms were not disclosed.

Dominion Resources, a Richmond-based power company, sold its Latin American power businesses to Houston-based Duke Energy International for $405 million.

Hazel & Thomas, a Fairfax-based law firm, was acquired by the Washington, D.C.-based law firm Reed Smith Shaw & McClay. In Virginia, the new firm will operate as Reed Smith Hazel & Thomas. Terms were not disclosed.

Markel Corp., a Richmond-based insurance company, acquired Terra Nova Holdings Ltd., an insurance company based in Hamilton, Bermuda. The cash, stock and debt deal, which will nearly double the size of Markel Corp., is valued at $1.08 billion — the biggest acquisition in Markel's history.

Smithfield Foods, a Smithfield-based meat-processing company, plans to acquire Murphy Family Farms, a Rose Hill, N.C.-based hog producer for 10 million shares of Smithfield stock. As part of the deal, Smithfield will assume $170 million of Murphy Farms' debt and liabilities.

Valley of Virginia Cooperative Milk Producers Association, producer of Shenandoah's Pride dairy products in Rockingham County, plans to sell the co-op to Suiza Foods Corp., a Dallas-based dairy products company. Terms were not disclosed.

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Deals
Charlottesville's Argonex joins
gene therapy venture

Charlottesville-based Argonex Inc., a biotechnology company, entered into a joint venture to develop gene therapy products with Philadelphia-based Rohm and Haas Co., an electronic materials and specialty chemicals manufacturer.

Argonex is the managing director and 40 percent owner of the joint venture, which is called RheoGene. Rohm and Haas Co. owns the remainder.

Gene therapy is the introduction of therapeutic DNA into a patient's cells to correct genetic defects. RheoGene will work with pharmaceutical companies, research foundations and other organizations to develop gene tools.

For Argonex, which develops cancer-fighting technologies, the venture will add 15 to 20 scientific research positions to its staff of about 30.

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America Online of Dulles and Earthlink Network, an Internet service provider based in Pasadena, Calif., announced an agreement that calls for Earthlink to distribute a co-branded version of AOL Instant Messenger to its 1.3 million subscribers.

America Online and Cupertino, Calif.-based Apple Computer Inc. agreed to create instant messaging products for Macintosh users.

CollectingChannel.com, a Norfolk-based Web site for collectors, and iSyndicate, an Internet content company based in San Francisco, announced a partnership to provide online information about the $80 billion collectibles market.

Henninger Media Services, an Arlington-based post-production video company, and IBT Group, a Falls Church-based product-development company, formed a partnership to provide multimedia services on digital video discs.

UOL Publishing, a McLean-based distance-education company, and NIIT, a New Delhi, India-based Internet technology company, agreed to distribute NIIT courses to organizations through UOL's VCampus, a program that hosts, delivers and manages training systems via the Internet.

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New Plants and Companies
Hale and Dorr, a Washington, D.C.-based law firm, plans to move its corporate technology practice headquarters into an existing facility in Reston.

Landmark Communications Corp. of Norfolk, launched BidZilla, a Web site designed for buying and selling second-hand merchandise in the Hampton Roads region.

Mark Container Corp., a San Leandro, Calif.-based packaging materials manufacturer, opened a 50,000-square-foot East Coast facility in Richmond. The company will employ as many as 25 people at the new plant.

NextDayChair.com, an online chair retailer based in Woodbridge, opened in August. The company uses two Virginia warehouses to stock and ship the chairs.

Perdue Farms, a Salisbury, Md.-based poultry producer, plans to open a $25 million packaging, labeling and distribution center in Prince George County. The center, which will be housed in a pre-existing building, is expected to employ 175 people.

The Whitlock Group, a Richmond-based technology consulting company, formed an independent software firm called Passage Software. The new company is based in Richmond, and it plans to develop and market software to help computer designers create applications from system models.

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Expansions
Navy engineering contractor expands
in Virginia Beach

Amsec, a provider of engineering and planning services for the Navy, plans to expand its headquarters in Virginia Beach. The company projects that the $2 million expansion will create 200 jobs, bringing the number of Amsec employees to more than 1,000. Ann Garner, director of administration, says over the next five years, the company plans to hire 300 more people. Most of the positions will be for engineers and designers.

The company is gearing up to handle new contracts and acquisitions. This year, the company has won four contracts worth about $200 million, Garner says.

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Argonex, a Charlottesville-based biotechnology company, plans to invest $2.5 million to establish a business in Dundee, Scotland. The company, which will be called Argonex Discovery, will manufacture products used in cancer and autoimmune disease research.

Argonex Discovery will operate under a licensing agreement among Argonex, the University of Dundee and Scotland's Medical Research Council. Technology from the university will be transferred to Argonex in exchange for royalties from Argonex Discovery's sales.

PSINet, a Herndon-based Internet service provider, opened the Global Internet Hosting Center in London with a $47 million investment. The center will host online services for customers of PSINet and other telecommunications carriers.

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Cutbacks & Closings
Preston Trucking Co. of Preston, Md., closed in July, leaving 63 people out of work in Roanoke. The company's chief financial officer, Sean Callahan, said in a prepared statement that the company closed because it was not generating enough money to pay its bills. He said the company attempted but failed to obtain additional financing. In 1998, the company's revenues dropped $200,000 a day.

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Stocks
Cysive Inc., a Reston-based software engineering firm, registered with the Securities and Exchange Commission for an initial public offering.

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Directors
Charles A. Bowsher, Newport News Shipbuilding.

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Executive Promotions
David Gentry, chief information officer, Lee Technologies Group, a Fairfax-based power and environmental products company.

Thomas P. Host III, senior vice president, T. Parker Host Inc., a shipping agency based in Norfolk.

Walt Kelley, president, Heritage Title Ltd., a title insurance agency.

David J. Leudemann, executive vice president, Falls Church-based Atlantic Bank.

S. Kent Rockwell, CFO, Sensys Technologies, a communications equipment manufacturer.

Richard Roth, CFO, Intellisource, a Vienna-based information technology company.

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Contracts
AmerInd Inc., Alexandria: $26 million from the Navy for submarine training programs.

Anteon Corp., Fairfax: $250 million from the General Services Administration for infrastructure protection services.

Bell Atlantic Federal, Fairfax: $125 million from the Justice Department for telecommunication services.

C.B.C. Enterprises, Norfolk: $8.9 million from the Army for construction services.

Comprehensive Technologies International, Fairfax: $2.5 million from the General Services Administration for studies and analytical services.

Cottrell Contracting Corp., Chesapeake: $1.9 million from the Army for construction services.

Dyn Marine Services, Reston: $144 million from the Navy Military Sealift Command for technical management and support.

Environmental Co., Charlottesville: $9.7 million from the General Services Administration for special studies.

GeoLogics Corp., Alexandria: $2 million from the Navy for administrative services.

Hankins and Anderson Inc., Richmond: $15 million to provide engineering design for the U.S. Embassy Chancery Building in Beijing, China.

Hathaway-Duke Construction Co., Virginia Beach: $13 million from Sussex County to build Sussex Central High School.

Horne Engineering Services Inc., Norfolk: $3 million from the Navy for conservation services.

Infodata Systems Inc., Fairfax: $3.9 million from the Federal Deposit Insurance Corp. for consulting services.

Intel Corp., Leesburg: $19.7 million from the Naval Air Warfare Center for training devices.

Labat-Anderson Inc., McLean: $17.5 million from the General Services Administration for analytical services.

Logistics Value Integrations, Fairfax: $500,000 from the General Services Administration for management support services.

Mantech Advanced Systems International Inc., Fairfax: $3.1 million from the Fleet and Industrial Supply Center for construction services.

Marine Hydraulics International Inc., Norfolk: $2.8 million from the Navy for ships and small craft.

Newport News Shipbuilding, Newport News: $24 million from the Navy for the overhaul of the USS Gettysburg.

Norfolk Shipbuilding and Drydock Corp., Norfolk: $2 million from the Navy.

PCCI Inc., Alexandria: $5 million from the General Services Administration for analytical services.

Sensys Technologies, Newington: $2.1 million from the Navy for systems support.

Techlaw Inc., Chantilly: $10 million from the General Services Administration for special studies and analyses.

United Book Press Inc., Baltimore: $1.1 million from the government printing office for publication services.

Viatech Systems Inc., McLean: $9.2 million from the Treasury Department for data processing and telecommunication services.

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