Diagnostic HYBRIDS and E State Street Development Co. Announce Lease for New World Headquarters
Athens, OH – Privately held Diagnostic HYBRIDS (DHI) announced today that it and East State Street Development Co. (ESSDC), owned by local businessmen Brent Hayes and Tom Parfitt, signed a definitive lease agreement for 50,000 square feet of commercial space in the former McBee plant, with an option for an additional 25,000 square feet to accommodate further expansion. DHI and ESSDC will renovate the building to provide world-class headquarters for DHI’s operations and research and development needs currently located in the BioChemistry Buildings and Ohio University Innovation Center, respectively, on West State St.
David Scholl, Ph.D., president and chief executive officer of DHI, commented, “We are most appreciative of the confidence that Brent Hayes and Tom Parfitt have demonstrated in the Company, our employees, and its management. All parties are firmly committed to improving the quality of life and the economic development landscape in Athens. Thus, while the process of finding our next home began in 2005 and experienced a few false starts, patience and commitment to our origins as an Ohio University spin-off and deep Athens roots was rewarded with this excellent outcome. Indeed, we are most pleased to be the anchor tenant through this deal and a model for successful development of high technology enterprises in a beautiful rural setting like Athens."
Brent Hayes and Tom Parfitt commented, “We are extremely excited that we are able to provide DHI with the necessary facility to continue to grow and more importantly stay in Athens. It has been a long and sometimes difficult project, but we are very pleased with the patience that Dave Scholl, Geoff Morgan and the company’s board of directors have demonstrated and the faith they had that we would get this done. To have a high-tech company like DHI in Athens helps everyone involved, from current employees to Ohio University and the City of Athens. We believe the facility, once the renovation is completed, can be the next step in developing high tech companies like DHI that have outgrown their current facilities and need a technologically sound facility to move their operation. With the help of the City and the University we feel this project will be beneficial to all of Southeast Ohio.”
Diagnostic HYBRIDS has seen significant growth over the past five years that created a critical need for the Company to locate a suitable facility to sustain and grow long-term. According to Geoff Morgan, chief financial officer and vice president of DHI, “We evaluated numerous options including new construction in Athens and relocation outside of Athens, but concluded that the former McBee plant was the most attractive option from both a financial, operational, and growth standpoint.” Morgan continued to say, “Meeting our requirements was complicated because we were not looking for 200,000+ square feet of space. Thus, to make the McBee location feasible required a landlord owner to assume responsibility for the facility and tenant leasing. We appreciate ESSDC stepping forward to make this transaction possible.”
Scholl highlighted the key economic development role Ohio University has played in DHI’s development and growth over many years, and most recently in enabling the Company to expand its manufacturing and R&D operations under lease to the Ohio University Innovation Center. The Ohio University Research and Enterprise Park buildings provided critical growth space to the Company as the business was rapidly expanding subsequent to two successful acquisitions in 2002.
As Scholl explained, “Executing such a significant plan has taken time. In all of this, he said “Our founders, led by entrepreneur Will Konneker, our major supporters on campus, led today by president Dr. Roderick McDavis, and investors led by The Ohio University Foundation and Summit Partners, must all be recognized for the collective roles each played in guiding our early days and nurturing our growth. Developing a profitable biotechnology company anywhere in the country is not a trivial feat, so for us to thrive in Athens and ultimately serve as an anchor tenant for ESSDC with a strong, technically proficient employment base, was certainly a team effort. It’s a great story, one that many participated in and supported over several years, and one that many in the community should feel equally proud about telling.”
The Company and ESSDC have also worked closely with state and local economic development officials to address various capital requirements associated with this expansion transaction. According to Morgan, “Jennifer Simon of the Athens Area Chamber of Commerce never wavered in her commitment to retaining our Company, and worked tirelessly to assist us in site identification and economic incentive packages to make it all happen in Athens. We are grateful to the Chamber and to Jennifer for their help in facilitating this result.”
ESSDC has already begun the extensive process of preparing the McBee Building for the specialized leasehold improvements required by the Company to operate its medical device manufacturing to ISO 13485 standards. Depending on progress, the Company is planning on a staged move-in beginning in October and completed by mid-November 2007. In addition to a complete make-over of the former McBee Building, ESSDC is also in the process of developing a name for the renovated building to better align the use and marketing of it to reflect a vision of multi-use, multi-tenant occupancy that blends economic growth and improved quality of life for those that experience and work along the East State Street economic development corridor.
"We have many reasons to celebrate the community benefit of DHI, East State Street Development Co. and the Ohio University Innovation Center," said Jennifer Simon, CEO of the Athens Area Chamber of Commerce. "On May 4 from 3-5 PM, we will be hosting a public celebration of DHI's graduation from the Innovation Center."
About Diagnostic HYBRIDS
Diagnostic HYBRIDS develops and commercializes innovative and genetically engineered cell-based detection products for virus and autoimmune human diagnostic applications and for the pharmaceutical and biotechnology industry with an initial focus on pharmacology assays and products that measure drug clearance and anti-viral interventions with drugs and vaccines. The Company is certified to ISO 13485 standards and manufactures live continuous and primary cell cultures for clinical diagnostics and pharmacology assays from its headquarters in Athens, OH. Diagnostic HYBRIDS was named one of the 500 Fastest Growing Companies in America in 2004 and 2005 by Inc. Magazine. The Company is a pillar member of BioOhio, a statewide organization of bioscience companies accelerating the bioscience and healthcare economy in Ohio. For more information, please visit www.dhiusa.com.
Contact Information:
Geoff Morgan
Vice President, CFO
740-593-1784
morgan@dhiusa.com
Media:
Paul Werth & Associates
William H. Kiefaber
Vice President, Corporate Practice Area
614-224-8114
Kiefaber@paulwerth.com
Contact Information:
Brent Hayes
740-517-3410
Tom Parfitt, CPA
740-592-6641
tom@tomparfittcpa.com
Athens Area Chamber of Commerce:
Jennifer Simon
CEO
740-594-2251
jennifer@athenschamber.com
