St. Louis Corporate Mergers, Acquisitions & Relocations

gary kreie · PostDec 13, 2016#5762016-12-13T17:59+00:00

Boeing has seen too many contract decisions being made for reasons other than cost and technical ability in the last 20 years or so. The services know that they need to pick a contractor who can keep a program sold to Congress. So all big contracts, such as fighter jets, go to big states -- either California, Texas, or Florida, no matter how badly the winner has performed in the past. Lockheed moved their World HQ to the DC area in 1994 after the Martin merger. In Washington, the executives can play golf with the decision makers, see them at church, etc. It is all about marketing.

Another disturbing trend is defense contracts going to nice weather areas. Government folks who fill out scorecards in their skill category that help decide winners, are later the same people who administer the contract over the next 10 years. It is pretty easy for them to shade their evaluations to favor places they would like to travel to over the next 10 years when the proposals are close. Nobody wants to travel to the Rust Belt in the winter. So the Midwest is the big loser for a lot of defense contracts nowadays.

So it makes some sense to move the Boeing Defense HQ to Washington. They can bid up housing there even more.

The move brings up the question -- do we really still need all government agencies to reside in Washingto DC in the digital age? I'd like to see the Post Dispatch pursue that question on their editorial page. Here is a nice piece from VOX suggesting we move some large government agencies to the Midwest. Then coastal folks can send their tax money to our cities and get little product in return, as we now do with Washington.

http://www.vox.com/new-money/2016/12/9/ ... to-midwest

jshank83 · PostDec 13, 2016#5772016-12-13T18:59+00:00

Not really a Relocation but Granite City Steel is reopeing in February so that is good news!

flipz · PostDec 13, 2016#5782016-12-13T19:01+00:00

gary kreie wrote:
The move brings up the question -- do we really still need all government agencies to reside in Washingto DC in the digital age? I'd like to see the Post Dispatch pursue that question on their editorial page. Here is a nice piece from VOX suggesting we move some large government agencies to the Midwest. Then coastal folks can send their tax money to our cities and get little product in return, as we now do with Washington.

http://www.vox.com/new-money/2016/12/9/ ... to-midwest

The whole idea behind DC was to prevent what is happening today; that is unfair spread of federal money. The entire area surrounding DC is benefiting enormously from our huge government.

imperialmog · PostDec 13, 2016#5792016-12-13T19:07+00:00

Its also a lot about lobbyists and influence. The executives need to schmooze with the powers that be to get deals done, since that's the way the game is played.

arch city · PostDec 13, 2016#5802016-12-13T19:45+00:00

For the youngsters here, General Dynamics too was fully headquartered in St. Louis before it, too, moved to the D.C. area citing the same reasons Boeing Defense, Space & Security are giving now. General Dynamics Corp., Lockheed Martin Corp, Northrop Grumman Corp. - and now Boeing DSS will all be based in the D.C. region.

I know Boeing and others such as Lockheed have had a hard time under the Obama Administration - enough blame there to go around with the Republicans too. There hasn't been too many orders for new jet fighters by the U.S. and now with Trump already stirring trouble over military and commercial jet costs - competition and lobbying are going to get tougher.

However, since 1997 Boeing Defense, Space & Security has operated out of St. Louis largely without any problems. And before then - the independent McDonnell-Douglas.

Particularly with the history of M-D, the least Boeing could do is give St. Louis a named division. I've read that they are keeping a handful of executives in St. Louis. Perhaps "Jets, Munitions and Carbon Composites"? It would still be under the tutelage of Boeing Defense, Space & Security, but at least St. Louis would have a true division with 15,000 workers.

PostDec 13, 2016#5812016-12-13T20:29+00:00

By the way, this is the same St. Louis-based executive, Leanne Caret, who moved a division from St. Louis to OKC - creating some 500 jobs there.

Also, Boeing announced that it is opening a new division in Dallas called, "Global Services" that will handle a mix of commercial and defense-related maintenance and upgrade work - work that was being done in St. Louis and elsewhere. This is a strategic move by Boeing because it would help them when lobbying Texas' Washington legislators.

Don't be surprised if some of St. Louis' 14-15,000 Boeing jobs start to s-l-o-w-l-y trickle to Texas in upcoming years and the role of the new "Global Services" division in Dallas changes or increases.

Below, read up on Leanne Caret. She has degrees from Wichita State and Kansas State University.

Leanne Caret #1
Leanne Caret #2
Leanne Caret #3

jshank83 · PostDec 13, 2016#5822016-12-13T21:44+00:00

Caleres (Brown Shoe in Clayton) buys Allen Edmonds

http://footwearnews.com/2016/business/m ... es-285384/

DogtownBnR · PostDec 13, 2016#5832016-12-13T22:15+00:00

Did anyone see this coming (Boeing Move)?

While I understand the reasoning, I've never heard anything about this here or anywhere else? I've always been more focused on production line jobs.

Where does this leave STL from a white collar standpoint, now and in the future? Will this effect the blue collar side of the operation here?
Is this a Charter type deal where executives only leave or is this the beginning of the exodus?

Any insiders or takers on these questions?

STLrainbow · PostDec 13, 2016#5842016-12-13T22:57+00:00

^ No insider, but I doubt the move of the exec team to D.C. will impact production negatively here... also, remember that for the first time, iiuc, we'll be getting some commercial airline production. My sense is that this is essentially a govt. relations move and likely has a better chance of leading to more Boeing contracts and resulting jobs here than cutting them.

arch city · PostDec 13, 2016#5852016-12-13T23:08+00:00

Boeing seems to have kept it under wraps - especially from the media.

Even the St. Louis Economic Development Partnership seemed a bit blind-sided.

But right now, it's just major executives - about three dozen - and 50 support staff.

14-15,000 jobs along with some executives are staying in St. Louis. St. Louis will be okay.

This is essentially a company within a company - a $30-billion division - needing to drum up more business in Washington.

I don't like the move to D.C., but it could bode well (ie. better) for St. Louis because if the new CEO of BDSS is a "wheeler and dealer" more manufacturing jobs could be coming. Boeing's main fighter plant is in St. Louis.

St.Louis1764 · PostDec 14, 2016#5862016-12-14T00:04+00:00

This is becoming more than disturbing how long will the drain continue for Saint.Louis?? I feel like we've lost more this year than gained in the entire decade. If this doesn't wake Saint.Louis up then i don't know what will.
I'm truly hoping all this will subside or stop and maybe jus maybe Saint.Louis can begin to gain some HQs cause right now it will only be a matter of time before Bayer announces its moving its NA HQ to North Carolina...
Im usually positive and upbeat about Saint.Louis however this really has waken me up i know we've got problems but man this is getting out of hand...

joelo · PostDec 14, 2016#5872016-12-14T01:20+00:00

We aren't gaining any large relocations. It's just not going to happen. All we can hope for is a startup hitting big here in St. Louis and growing from that.

DogtownBnR · PostDec 14, 2016#5882016-12-14T01:42+00:00

While this has been a brutal year for corporate HQ losses, Monsanto, Boeing Defense, Scottrade and other losses like Rams and even Wehrenberg, that are a hit to our pride, 2016 can't end soon enough.

While we'd prefer not to lose these HQ, jobs are what we need and there's no evidence to date, that Boeing or Bayer will be closing up shop in STL. If there are two companies that I feel will still have a large presence here after a HQ move, it would be these two. Lots of recent investment in their local facilities. I'm not happy about losing the prestige of a F500 HQ and Boeing Defense HQ, my hope is that these moves will only solidify their presence here. Time will tell!

arch city · PostDec 14, 2016#5892016-12-14T02:29+00:00

Anything is possible. I don't think a large firm would never relocate to St. Louis. It's very possible it could happen. St. Louis nabbed a large chem company from Cleveland recently. What goes around, comes around.

Listen.....Nineteen years ago this week, McDonnell-Douglas was swallowed by its chief competitor, Boeing, and the sky was falling in St. Louis. Yet, St. Louis is still here.

Same with TWA, May, Solutia, Edison Brothers, A. G. Edwards, A-B, Boatmen's, Mercantile, Charter, Savvis, Sigma, RehabCare, Ralcorp, Smurfit-Stone etc. Now Scottrade, Monsanto and Boeing DSS.

Even when St. Louis had companies like Express Scripts, Centene, Belden, Post and others growing fast, people still cynically said, "Last one, turn off the lights", which was "so St. Louis", in my opinion.

When the local companies were acquired, relocated, went bankrupt or were declared insolvent, many locals believed "St. Louis was on her last leg" all because the region has faced these crazy rashes of companies that simply participate in business.

Yet, St. Louis is still here.

As I see it and according to media, St. Louis is in the midst of its biggest economic (jobs and real estate) boom - a boom it hasn't seen in 20 or 30 years. Depending on the study or survey, St. Louis is often praised as start-up hub. St. Louis has one of the most-respected innovation districts in the country. A booming health care industry. And the new presence of international companies from places like Israel, Germany, Australia, Canada, France, etc.

Big companies and divisional HQs are great to have - without a doubt - but what St. Louis needs is CONTINUED job growth. Prestige shouldn't be measured only by how many big F1000 companies exist, but by how many good-paying jobs St. Louis can create, grow and lure.

St. Louis is still here. St. Louis isn't going anywhere no matter who leaves.

framer · PostDec 14, 2016#5902016-12-14T02:39+00:00

Mergers and acquisitions happen everywhere, and they always have; it's nothing new. Old companies get bought, new companies grow. Always have, always will. It's called business.

This happens to every city in the world; it's not some kind of "St. Louis thing", so please, everyone just relax.

wabash · PostDec 14, 2016#5912016-12-14T03:59+00:00

Great to hear about Caleres buying Allen Edmonds.

jcity · PostDec 14, 2016#5922016-12-14T05:34+00:00

"Nobody wants to travel to the Rust Belt in the winter. So the Midwest is the big loser for a lot of defense contracts nowadays. "

Ha. The weather is your excuse? D.C. Has the same weather as us. Try right to work states. I hope this passes next year, otherwise we will certainly see a loss of more production jobs. Did Boeing really choose South Carolina as a new production site because of the weather?! LOL!

MarkHaversham · PostDec 15, 2016#5932016-12-15T01:48+00:00

We'll still lose production jobs after right-to-work passes, we just won't care as much because they'll be so crappy without unions anyway.

arch city · PostDec 27, 2016#5942016-12-27T21:49+00:00

Just an FYI:

Chicago-based Abbott Labs is buying Minneapolis-based St. Jude Medical (a $6-billion firm).

DEALS | Tue Dec 27, 2016 | 4:06pm EST
Reuters
Abbott gets U.S. antitrust approval to buy St. Jude Medical

Note: Posting just to demonstrate other cities lose their company gems too. MSP is huge in medical devices.

PostDec 27, 2016#5952016-12-27T22:05+00:00

Just an FYI:

Atlanta recently lost two big companies through mergers.

One local company grows larger through a local merger. Southern and AGL Resources (both Atlanta-based companies) are merging thus creating the 2nd largest utility in the country.

July 1, 2016
Southern Company and AGL Resources complete merger, create a leading U.S. energy company

----------------------------------------------------------------

Post Properties has developed some really nice properties. Hopefully, the combined company will spread to St. Louis.

Atlanta's Post Properties being bought by Mid-America Apartment Communities
Atlanta Business Chronicle
Aug 15, 2016, 1:43pm EDT

The combined company’s 10 largest markets by unit count will be Atlanta, Dallas, Austin, Charlotte, Raleigh, Orlando, Tampa, Fort Worth, Houston and Washington, D.C.

The combined company’s corporate headquarters will be located in Memphis, with the company also maintaining a significant presence in Atlanta and Dallas, including management and resources supporting new development operations.

jshank83 · PostJan 17, 2017#5962017-01-17T18:16+00:00

Since it seems like we only talk about mergers that are STL firms being aquired. Here is one were the company here buys someone else.

Aclara acquires smart grid unit of Apex CoVantage

http://www.prnewswire.com/news-releases ... tinue-jump

And another one.

MetroGistics, equity partner acquire Georgia logistics company

http://www.bizjournals.com/stlouis/news ... orgia.html

PostJan 18, 2017#5972017-01-18T02:00+00:00

More good news.

Argentinian agtech company selects St. Louis for North American HQ

http://www.bizjournals.com/stlouis/news ... s-for.html

PostJan 27, 2017#5982017-01-27T19:49+00:00

Israeli tech company selects St. Louis for US headquarters

http://www.prnewswire.com/news-releases ... 98249.html

Chalupas54 · PostFeb 07, 2017#5992017-02-07T05:51+00:00

With CAT moving to Chicago, I would really like to see St Louis begin aggressively targeting some of these HQs. I know we aren't Chicago, but the whole "St Louis doesn't have air service" excuse is moot. St Louis has direct service to all major US markets, and is bound to get international service in the very near future.

Sent from my iPhone using Tapatalk

robertn42 · PostFeb 07, 2017#6002017-02-07T15:39+00:00

^Conagra would fit well atop AT&T tower

St. Louis Corporate Mergers, Acquisitions & Relocations

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