Crain's Chicago reports that a local protein bar company called RxBar is being acquired by Kellogg's for $600 million. RxBar was started by some friends in their early 30s with $10,000 in funds. They initially built it out of their parent's suburban kitchen, then into a commercial space in the city. They now have $120 million in revenue, employ 75, are hiring 40 more, and the owners (and any later investors they may have) are about to become spectacularly rich: Four years ago, Peter Rahal was making protein bars in his parents' Glen Ellyn … [Read more...]

The Wall Street Journal had an interesting article about how Chicago's downtown office boom is being fueled by old line industries like food and consumer goods. Like many other major U.S. cities, Chicago is enjoying a boom as big employers opt for downtowns over suburban office parks that are being shunned by young workers. More than $20 billion worth of residential, office, cultural and retail projects are in development or on the drawing board, according to the city Planning and Development Department. But Chicago’s growth engine is … [Read more...]

Earlier today Caterpillar announced that it was moving its corporate headquarters from Peoria to Chicago. The move affects about 300 top-level executives. The company will retain a large presence in Peoria. This is in line with what I've written about before: the rise of the executive headquarters, where a company moves its executive suite (anywhere from 50-500 people) to a major city like Chicago while leaving the back office elsewhere. Chicago has benefitted from this more than any other city I know. In addition to many corporate HQ … [Read more...]