Compiled by Julie Leupold
TOP STORIES
Aliso Viejo-based drug maker Valeant Pharmaceuticals International is paying $285 million for a Northern California maker of drugs to treat acne and other
skin conditions. Valeant is buying Peta-luma-based Dow Pharmaceutical Sciences Inc. in a deal set to close in the next few weeks. Dow, which isn’t related to Dow Chemical Co., is privately held with yearly sales of $45 million.
Lake Forest-based Western Digital Corp. is a leading candidate to buy the disk drive business of Japan’s Fujitsu Ltd. in a deal that could be worth more than $600 million. Tokyo-based Fujitsu is looking to sell off its computer products operations to focus on technology consulting.
TECHNOLOGY
Shares of Irvine chipmaker Broadcom Corp. slumped last week after the company lowered its outlook for the current quarter. Including its $142 million buy of Advanced Micro Devices Inc.’s digital TV chip business, Broadcom is expecting fourth-quarter sales of $1.05 billion to $1.1 billion. That’s down from its previous outlook of $1.17 billion to $1.2 billion, which didn’t include the acquisition. The company didn’t give a profit outlook.
Santa Ana’s Hirsch Electronics Corp., a maker of security systems for computer networks and buildings, was bought by Germany’s SCM Microsystems Inc., a maker of smart card readers. Terms of the cash, stock and debt deal weren’t disclosed. It’s expected to close in the first half of next year. Hirsch has about 100 workers here.
HEALTHCARE
Edwards Lifesciences Corp. expects a larger profit in 2009 on slower sales growth. The Irvine heart valve maker said it sees its earnings next year at $163.8 million to $169.4 million, up 15% to 19% from this year’s expectations. Sales are expected to be at $1.24 billion to $1.33 billion, due to the stronger dollar hurting overseas sales. Analysts expect Edwards to make $163.8 million on sales of $1.25 billion in 2009.
Irvine-based Masimo Corp. is being added to Standard & Poor’s MidCap 400 stock index on Dec. 18, replacing PDL BioPharma Inc. of Redwood City. The news drove a gain in the company’s shares last week.
REAL ESTATE
San Clemente-based hotel owner Sun-stone Hotel Investors Inc. reaffirmed its 2008 outlook but said it saw revenue per available room fall 9% to $122.76 in October and November from a year earlier. Even so, Sunstone said it is sticking with a 2008 forecast of a 1% increase to a 4% decrease in revenue per available room. It sees funds from operations of $123 million to $131.4 million, which at the high end exceeds the $127 million expected on average by analysts.
RETAIL
Orange-based Boot Barn Holding Corp., a western shoe and clothing retailer, has acquired 14 stores in Wyoming and Nevada. Boot Barn bought the stores in a bankruptcy liquidation sale from Dallas-based BTWW Retail LP.
At the county’s nine remaining Mervyn’s stores, 882 workers will be let go when those locations shutter, according to data the retailer submitted to the California Employment Development Department. The layoff breakdown by store: Tustin, 129; Garden Grove, 109; Anaheim, 109; Huntington Beach, 104; Mission Viejo, 101; Anaheim Hills, 96; North Fullerton, 84; Fullerton, 77; and Cypress, 73.
FINANCE
Santa Ana-based oil change chain EZ Lube LLC filed for bankruptcy protection. EZ Lube, which runs 82 stores in California and Arizona, has lined up financing and plans to restructure and sell off operations to a group of investors. The company plans to borrow more than $60 million from a group of lenders led by Goldman Sachs Group Inc. EZ Lube also hopes to sell assets in an auction with minimum bids set by its own investors.
HSBC is cutting 165 jobs at its Irvine-based subprime lending unit Solstice Capital, which no longer is accepting loan applications. About 130 workers in Irvine are being let go in stages through early next year
and another 35 workers being cut are in Nashville, Tenn.
GOVERNMENT
Officials in cash-strapped Orange County are planning to lay off 210 social services workers and force 4,000 other employees to take two weeks off without pay. County officials, who still could change or withdraw the plan, haven’t said when they will implement it. By forcing everyone left in the Social Services Agency to take unpaid leave, the county hopes to avoid laying off 415 more workers as it faces an $84 million budget gap in the next fiscal year.
OTHER NEWS
The company that makes Freeline Skates has moved to Irvine from San Diego. Freeline Sports Inc. is bringing 10 to 15 jobs to Orange County.
