The city of Hartford added 362 new jobs and 80 new businesses in 2013, but Hartford Mayor Pedro Segarra said he’s projecting stronger economic growth this year, with as many as 2,000 new construction jobs from various developments, including new housing conversions in downtown Hartford.
Segarra disclosed the jobs figures as part of an unofficial state of the city address during last week’s MetroHartford Alliance Rising Star Breakfast. Segarra trumpeted several new business openings in 2013 including Colt Café, Trampoline Launch, Capital Grille, and Foley Carriers. He also disclosed that a Hartford employer will soon relocate about 130 jobs to the Capital City. He didn’t elaborate.
Other interesting titbits from Segarra’s speech:
• The city is investing in new electronic permitting software to speed up the permitting process. It will allow applicants to: apply and pay for permits and licenses and track their status online; submit plans and documents for review; and receive feedback and approvals via the Internet.
• The city’s tax task force will soon present recommendations on fixes to Hartford’s multi-tiered property tax structure and high mill rate, which have drawn the ire of businesses and developers.
• The city has about a half billion dollars in development and rehabilitation work permitted and ready to go. The investments will be made in new housing, anti-blight efforts, downtown north revitalization, park rehabilitations, school building remediation, arts and culture, and the city’s intermodal triangle project.
Aetna, Open Solutions deals top CT’s largest 2013 M&A list
Aetna’s $6 billion acquisition of Maryland insurer Coventry Health Care and Fiserv Inc.’s $1 billion purchase of Glastonbury banking technology firm Open Solutions were the two largest Greater Hartford M&A deals in 2013, according to the Hartford Business Journal’s Book of Lists.
Aetna completed its Coventry acquisition last May, giving the Hartford insurer a much larger presence in the growing Medicare Advantage and Medicare prescription drug businesses. The deal has already paid dividends: Aetna’s stock price last week hit a record high $71.73, amid growing investor optimism that Coventry will boost the insurer’s 2014 earnings.
Meanwhile, Wisconsin-based Fiserv, which provides check-processing and cash-machine services, announced its deal in January 2013, agreeing to pay $55 million and take on $960 million in debt so it can add Open Solutions’ real-time, account processing platform, among other services, to its suite of products.
It was the 10th largest Connecticut merger and acquisition in 2013, according to HBJ’s Top 25 M&A list published on page 10 of this week’s issue. Data from the list, which was sorted by overall deal size, was provided by M&A tracker FactSet Mergers.
Most of 2013’s largest deals took place in Fairfield County, where nearly two-thirds of the top 29 mergers and acquisitions occurred, including Frontier Communications’ $2 billion proposed purchase of AT&T’s Connecticut wireline business.
Other notable Greater Hartford deals included: Bristol manufacturer Barnes Group’s $372 million acquisition of Germany’s Otto Manner Holding AG; Rockville Financials and United Financial Bancorp’s $369 million merger of equals; and Wallingford-based Amphenol’s $318 million acquisition of GE Advanced Sensors.
Manufacturers say workers don’t find CT attractive
A panel of manufacturers at the Connecticut Business & Industry Association’s recent Economic Summit Outlook said they are having a tough time attracting out-of-state workers to the Nutmeg State, which could threaten their ability to build a future workforce.
Sean Crowley, vice president of global manufacturing at North Haven medical device maker Covidien, said if the talent pool from the state’s high schools, vocational schools, and colleges ever dries up, his company would have a hard time keeping its production in the state, as new workers don’t want to move to Connecticut.
Why? For one, the cost of living is 34 percent higher in Connecticut than the national average, state figures show. Also, manufacturing still has a perception problem and Connecticut isn’t seen as a thriving economy, especially for manufacturers.
Other regional destinations like Boston and New York are also more attractive cultural hubs.
