Corrections or additions?
These articles by Barbara Fox were prepared for the January 18, 2006
issue of U.S. 1 Newspaper. All rights reserved.
Life in the Fast Lane
At an Einstein’s Alley meeting last month, CareGain CEO David Lenihan
predicted that his company’s plans to be bought would be fulfilled –
soon, but he couldn’t say by whom. Now the news is out. The buyer is
Fiserv Inc., a Wisconsin-based health plan manager. The sale price was
not disclosed. CareGain will continue to operate as a stand-alone unit
of Fiserv.
The firm’s current 45 employees will stay in East Windsor. “We are
expanding and we will also be continuing to use offshore resources,”
says Lenihan.
CareGain, founded in 2001 by Lenihan and Amit Gupta, has innovative
ways to cut healthcare costs (U.S. 1, February 2, 2002). Fiserv offers
health plan administration and business outsourcing services to
employers and health plans.
“Our crusade for consumer directed healthcare was a dream in 2001 when
we were first interviewed by U.S. 1,” says Lenihan. “Now the dream has
become a reality, and consumer-directed healthcare benefits will be a
mainstream product.”
“When we started, we were significantly capital constrained,” says
Lenihan. “With the help of venture capitalists, including the NJTC
Venture Fund, CareGain was able to build an industry-leading product
for the design and administration of these new consumer directed
healthcare benefits.” Currently CareGain is powering several health
plans, including Cigna’s, the health plans for the Mayo Clinic and the
University of Pittsburgh Medical Center, HIP of New York, and
Trustmark Chicago.
Lenihan reveals that just as the bankers were pitching CareGain to
Fiserv, Fiserv’s subsidiary, Wausau Benefits, recommended CareGain to
its parent – and that cemented the deal.
CareGain Inc., 50 Millstone Road, Building 300, Suite 100, Windsor
Corporate Park, East Windsor 08520; 609-426-1500; fax, 609-426-1595.
David J. Lenihan, chairman and CEO. Home page: www.caregain.com
Top Of PageNo More Lenox On Lenox Drive
In May Lenox plans to close its 90,000 square foot office on Lenox
Drive in the Princeton Pike Corporate Center and move to a
126,000-foot waterfront property in Bristol, Pennsylvania. Lenox will
also close a building with 180,000 square feet in Langhorne in the
consolidation effort. Jerry Fennelly of NAI Fennelly represented Lenox
in both transactions.
Billed as the largest transaction for 2005 in Bucks County, Lenox’s
new headquarters, on Radcliffe Road, is the former Dial soap factory.
It has a view of the Delaware River.
Preferred Real Estate (owner of the American Metro Center and Rhodia’s
former campus) owns the rehabbed soap factory and is reportedly buying
the Langhorne property. Brandywine Realty, which owns most of the
buildings at Princeton Pike Corporate Center, plans to buy the Lenox
headquarters there; it was designed by Geddes Brecher Qualls
Cunningham and is owned by Lenox’s former parent, Brown Forman.
Brown-Forman Corporation sold Lenox Inc. for $190 million last July to
Department 56, based near Minneapolis. The Pomona factory closed in
November and the fine ivory china manufacturing moved to Kinston,
North Carolina. The Pomona building is for sale.
Lenox Inc., 100 Lenox Drive, Lawrenceville 08648-2394. 609-896-2800;
fax, 609-895-0139. Home page: www.lenox.com
Top Of PageRhodia’s Move: In-State & Out
Rhodia vacated its Prospect Road campus in Cranbury and moved to two
locations – Cedar Brook Corporate Center and a laboratory in
Pennsylvania.
Cedar Brook Corporate Center now boasts the United States headquarters
for the French manufacturer of surfactants, fine organics, food
ingredients, water soluble polymers, latex and specialty polymers, and
phosphorus products.
The 175 laboratory workers moved to Bristol, Pennsylvania, on December
3 and 4. Some 400 workers in the headquarters office were relocated on
the weekend of December 17.
John Pierre Marchand is in charge of the laboratory at 350 George
Patterson Boulevard, Bristol PA 19007 (215-781-6001).
Rhodia was represented by an Iselin-based real estate firm, Equis, in
both transactions.
Innophos, which used to belong to Rhodia, stayed behind at the campus
on Prospect Plains road, now owned by Preferred Real Estate
Investments.
Deciding on the Bristol site, says spokesperson David Klucsik, was
partly spurred by incentives offered by Pennsylvania. But the biggest
factor in the decision was that Rohm & Haas had an empty lab that was,
he says, “quite new and state of the art.” New owners had consolidated
the R&D activities and closed that building. “The plant was suitable
to our chemistry,” Klucsik says. Rhodia and Rohm & Haas are
competitors, but they are also each other’s customers, a not unusual
situation for the chemical industry. “It is wonderful to have
everything under one roof,” says Klucsik.
Rhodia Inc. (RHA), 8 Cedar Brook Drive, CN 7500, Cranbury 08512-7500;
609-860-4000; fax, 609-860-0074. James Harton, president, North
America. Home page: www.us.rhodia.com
Tyco International announced on January 13 that it will divide its
remaining businesses into three parts, leaving CEO Edward Breen to run
one of the three. Analysts generally approved of the move. In December
Tyco sold its Plastics & Adhesives business for $975 million in cash.
By 2007 Breen will have a new title: CEO of Tyco Fire &
Security/Engineered Products and Services (TFS/TEPS), which has more
than 118,000 employees. Other Tyco executives will retain the
positions they now have or get a promotion.
Tom Lynch will get bumped up to the job of CEO of Harrisburg,
Pennsylvania-based Tyco Electronics, one of the world’s largest
passive electrical components manufacturers. It has about $12 billion
in revenue, and with 88,000 employees worldwide it is the largest
maker of connectors used by automobile makers. Juergen Gromer will
stay at Tyco Electronics as president and Jacki Heisse will continue
as CFO.
Lynch, who is the current president of New Hampshire-based Engineered
Products and Services, will be replaced by Naren Gursahaney. Dave
Robinson will continue as president of Fire and Security.
Rich Meelia, who is now Tyco Healthcare’s president, will be promoted
to CEO, and will retain COO Kevin Gould and CFO Chuck Dockendorff. The
healthcare (disposable medical supplies) business has nearly 40,000
workers and $10 billion in revenue, and it is second only to Johnson &
Johnson in this market. It is based in Massachusetts.
Breen, 49, left Motorola in 2002 to do a turnaround job for Tyco. So
far he has cut the company’s debt by more than half. Breen’s
predecessor, Dennis Kozlowski (now in prison for grand larceny), took
more than a decade to assemble all the companies in this conglomerate.
Tyco’s spokesperson, Sheri Woodruff, says that there will be no
“significant, immediate impact” on the 360-plus workers at the
headquarters at 9 and 7 Roszel Road, and that the engineered products
and services segments will certainly stay here. Meanwhile the company
had leased 30,000 square feet at 212 Carnegie Center from Mercer Human
Resource Consulting. Tyco may try to release its sublease – or Breen
could move his third of the firm into the cheaper space.
Tyco International Ltd. (TYC), 9 Roszel Road, Princeton 08540;
609-720-4200; fax, 609-720-4208. Edward Breen, CEO. www.tyco.com
Eden W.E.R.C.s, 2031 Old Trenton Road, West Windsor 08550;
609-426-8646; fax, 609-426-0630. Jamie Douglas.
Eden W.E.R.C.s, which employs adults with autism, opened its fourth
employment center, the Clayton Center, in December.
Eden’s employment opportunities include secure, center-based work such
as large and small mailing projects; supported employment with a job
coach; and competitive employment where employees are dropped off and
picked up from work. Eden employees can work at convenience stores,
clean offices, do assembly work, and do administrative work such as
filing and data entry. Founded in 1983, Eden W.E.R.C.s now works with
more than 90 adults.
Bank of America, 160 Lawrenceville-Pennington Road, Lawrenceville
08648; 609-896-3464; fax, 609-896-3759. Home page:
Bank of America is closing its branch at Lawrenceville-Pennington Road
on February 24, and it is consolidating its operations with the branch
at 3140 Princeton Pike in Lawrenceville. All the personnel have been
placed in other positions.
Hopewell Valley Community Bank, 280 Route 31, Box 999, Pennington
08534; 609-466-7399; fax, 609-466-7370. Maureen Hoppe, branch manager.
Just as Bank of America closes a nearby branch, Hopewell Valley
Community Bank will celebrate the grand opening of its Hopewell
Crossing full-service banking office on Saturday, January 21. This
branch will be open daily.
“We’re known for our great products and truly personal service, and
now we look to deliver them seven days a week,” said CEO James Hyman,
CEO.
Richard A. Gervasio MD, 50, on January 9. He was chairman of the
department of anesthesiology at RWJ University Hospital at Hamilton
and a founding partner at Hamilton Anesthesia Associates.
Ira Black, 64, on January 10. A clinical neurologist and
neuroscientist, he founded the Stem Cell Institute of New Jersey and
had succeeded in converting bone marrow stem cells into nerve cells
for transplantation in a variety of diseases.
Kevin T. Vitz, 50, on January 12. He worked at Allentown Caging and
Equipment Company.
Barbara Conlon, 68, on January 12. She was working at Acme on
Princeton-Hightstown Road.
James M. King, 32, on January 14. He was an agricultural product agent
and field inspector for the Department of Agriculture. The funeral
will be Thursday, January 19, at 9:30 a.m. at Our Lady of Sorrows
Church.
Corrections or additions?
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