Orange County has a track record of growing midsize companies that eventually get bought up by bigger ones. Oakley Inc., FileNet Corp. and PacifiCare Health Systems Inc. are recent examples. But there’s still plenty here to pick from. Here’s a look at local companies that have been the subject of buyout speculation or that just could catch the eye of potential suitors
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Allergan Inc.
Irvine
Yearly sales: $3.9 billion
Yearly profit: $499 million
Recent market value: $17 billion
Business: Specialty eye, skin drugs, breast implants, obesity treatment
Possible suitors: Pfizer Inc., other big drug makers
Pros: Acquirer would get lucrative Botox, other medical cosmetics products, steady sales of eye, skin drugs
Cons: OC’s most valuable company; rich market value could be tough sell
BECKMAN COULTER INC.
Fullerton
Yearly sales: $2.7 billion
Yearly sales: $211 million
Recent market value: $4 billion
Business: Medical testing, research machines, supplies
Possible suitors: Siemens AG, Roche Holding Ltd., big healthcare companies
Pros: Beckman is last stand-alone diagnostics company after recent consolidation
Cons: Shares rose last year on buyout speculation, but some analysts now call a deal unlikely
CERADYNE INC.
Costa Mesa
Yearly sales: $756 million
Yearly profit: $144 million
Recent market value: $790 million
Business: Bullet-proof vests, armored vehicles, industrial ceramics
Possible suitors: Bigger defense contractors
Pros: One of only two major makers of bullet-proof vests for soldiers, seen big demand from wars in Iraq, Afghanistan
Cons: Business off peak; company recently warned about 2008 results
CORINTHIAN COLLEGES INC.
Santa Ana
Yearly sales: $933 million
Yearly profit: $7.2 million
Recent market value: $660 million
Business: Vocational school operator
Possible suitors: Washington Post Co., other school operators, private equity firms
Pros: Washington Post took 8% stake
Cons: Company struggling with pullback in student loans; state probes of some campuses
DOWNEY FINANCIAL CORP.
Newport Beach
Yearly revenue: $1 billion
Yearly loss: $56 million
Recent market value: $560 million
Business: savings and loan operator
Possible suitors: Washington Mutual Inc., Wachovia Corp., other big banks, thrifts
Pros: Regional player in industry known for consolidation
Cons: Working through mortgage downturn; chairman owns 20%, reluctant to sell
EPICOR SOFTWARE CORP.
Irvine
Yearly sales: $384 million
Yearly profit: $23 million
Recent market value: $630 million
Business: Software that integrates data Possible suitors: Business software makers looking to target smaller customers
Pros: Relative bargain,shares down about 20% in past year
Cons: Company faces threat from online business software
QLOGIC CORP.
Aliso Viejo
Yearly sales: $587 million
Yearly profit: $105 million
Recent market value: $2 billion
Business: Data networking devices
Possible suitors: Cisco Systems Inc., other big networking, computer companies
Pros: Moving into new technology
Cons: Acquirer could lose customers over competitive concerns
QUEST SOFTWARE INC.
Aliso Viejo
Yearly sales: $631 million
Yearly profit: $63 million
Recent market value: $2 billion
Business: Database management software
Possible suitors: Hewlett-Packard Co., EMC Corp., Symantec Corp., Microsoft Corp., Oracle Corp., IBM Corp.
Pros: Smaller player in industry dominated by big names; software piggybacks on offerings from big companies
Cons: Competitive concerns for acquirer; chief executive holds 20% stake
