Here Are the 15 New Companies Joining the Fortune 500
This year, 15 newcomers are joining the Fortune 500 for the first time. The new class of debutantes arrives after a year of break-ups, mega-mergers, and friendly takeovers galore. Whether two years young (Baxalta) or nearly 200 years old (Veritiv, Citizens Financial), many benefitted from a record year for mergers and acquisitions. Here’s a roundup of the newest companies to join Fortune‘s annual ranking of the best in business.
2016 Rank: No. 307
Paypal, the payment juggernaut of Silicon Valley, is by no means a new name to the average consumer. But the company is a fresh face to the Fortune 500 after a high-profile split from eBay last summer. During its first year as a standalone company, Paypal raked in a revenue of $9.2 billion—enough to lead this year’s cohort of newcomers at No. 307. Also read: How PayPal Plans to Get Back on Top in Digital Payments from the June 15, 2016 issue of Fortune.
2016 Rank: No. 315
Univar, a chemical distribution company based in Illinois, is on a hunt for growth. After going public last June, Univar completed two back-to-back acquisitions of Arrow Chemical and Weavertown Environmental Group last winter. Despite a 13% dip in sales, net income for 2015 was $16.5 million.
Last July, the paper-products giant International Paper Company (2015 Rank: No. 127) spun off its underperforming distribution business, xpedx, and merged it with Unisource Worldwide. The resultant company was Veritiv, a print, publishing, and packaging distributor. For this well-pedigreed company, life has been rosy thus far: revenue in 2015 totaled $8.7 billion.
XPO debuts on this year’s list following a stunning 419.8% increase in revenue, the sum amounting to $7.62 billion. The Connecticut shipping provider’s spectacular growth follows an ambitious slate of acquisitions completed over the course of 2015: UX Specialized Logistics for $59 million; Bridge Terminal Transport for $100 million; Con-Way Inc. for $3 billion; and Norbert Dentressangle for $3.53 billion.
2016 Ranking: No. 420
Baxalta, a biopharmeceutical company that specializes in treating rare conditions, was spun off from the healthcare giant Baxter International (ranked No. 286 on the 2015 list) last July. Earning $6.1 billion in revenue its inaugural year, the young company is looking forward to greater growth as it awaits the conclusion of a $32 billion merger with Shire.
Zimmer Biomet was hatched in 2015 from a $14 billion mega merger between two orthopedic powerhouses—Zimmer and Biomet. The medical manufacturing scion reported revenue of $6.0 billion in 2015, amounting to a 28.3% year-over-year increase.
Genesis Healthcare, a Pennsylvania-based provider of skilled nursing and assisted living services, has become one of the nation’s largest care providers after concluding a $5.5 billion merger with Skilled Healthcare Group. Genesis’ growth has been further enhanced by a $240 million acquisition of nursing facilities from Revera in 2015.
8. Envision Healthcare Holdings
2016 Ranking: No. 469
2015 Rank: No. 587
Envision Healthcare, an emergency healthcare provider and ambulance operator, ascends into the Fortune 500 after generating $5.45 billion in revenue last year. For a pricetag of $1.4 billion, the company accelerated its growth last year with a series of nine acquisitions. Envision’s new portfolio includes Rural/Metro, a privately-held ambulance and fire protection company, acquired for $620 million.
To say that Arthur J. Gallagher had a busy year is an understatement. In 2015, the Illinois-based insurance broker acquired 42 companies—15 of which were completed in the fourth quarter—with estimated revenues totaling $223 million. The company’s net revenue amounted to $5.4 billion.
Markel, a speciality and small business insurer headquartered in Richmond, Virginia, concluded its third decade as a public company with $5.4 billion in revenue. Alongside strong underwriting results, the company’s growth has been fueled by two acquisitions: CATCo, a Bermuda-based investment management business, and CapTech, a Richmond-based management and IT consulting firm.
In addition to extending its naming rights deal with the Tampa Bay Buccaneers’ stadium, Raymond James has added its brand to the Fortune 500 roster. Having achieved a record revenue of $5.20 billion in 2015, the Florida-based financial services company is expanding its locations in the Northeast and Midwest.
ABM is making steady progress toward the “2020 Vision” of long-term profitable growth it announced last September. The facility services corporation accumulated $4.9 billion in revenue last year—up 5.3% from the previous year. Its growth was further bolstered by two new acquisitions—CTS and Westway Services—extending the New York company’s reach to DC and the UK.
Last November, Citizens Financial split from its foreign parent—the Royal Bank of Scotland—after nearly three decades of union. The trials of separation evidently didn’t impede the newly-independent bank’s solo performance: net income totaled $840 million in 2015.
Named one of Fortune’s 100 Fastest Growing Companies in 2012, Lam’s strong history of growth has now propelled the company to the ranks of the Fortune 500. The semiconductor equipment maker, based in Fremont, Calif., reported revenue of $5.3 billion in 2015.
Headquartered in Florence, New Jersey, this popular off-price retailer rounds out this year’s roster of newcomers at No. 500. Despite an unseasonably warm winter, the corporation best known for its discounted coats reported sales growth of 5.9% for fiscal 2015, posting $5.1 billion in revenue.
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