Compiled by Julie Leupold
TOP STORIES
Huntington Beach-based Quiksilver Inc. closed the sale of its struggling Rossignol unit for $50 million, or about 40% of what it had hoped to get in August and a fraction of the $560 million it paid for the French ski maker in 2005. The company sold the business to a former Rossignol executive, Australia’s Macquarie Group Ltd. and Jarden Corp., a Rye, N.Y., maker of outdoor products. The sale was made up of $38 million in cash and $12 million in debt. Quiksilver plans to use the proceeds to pay down debt.
San Clemente-based Sunstone Hotel Investors Inc. is planning a $50 million expansion of its Hyatt Regency Newport Beach. Plans for the hotel include 88 timeshares, an 11,000-square-foot ballroom, a 10,000-square-foot spa and a parking garage. The project was approved by the Newport Beach Planning Commission and should go before the City Council in January. From there, the Hyatt will have to seek approval from the California Coastal Commission.
TECHNOLOGY
Irvine’s Kofax PLC, a maker of business software, is set to move its headquarters into two buildings owned by Irvine Company in the Irvine Spectrum. Kofax inked a seven-year lease for more than 90,000 square feet, with an option to extend it. Financial terms weren’t disclosed.
A lawyer who worked for Broadcom Corp. cofounder Henry “Nick” Nicholas pleaded guilty to evading a banking law and could work with prosecutors as they prepare stock fraud and drug cases against his former boss. Craig Gunther, who served as chief operating officer of Nicholas’ family office for more than five years, pleaded guilty to two misdemeanor counts of violating federal banking laws by withdrawing large sums of money for Nicholas. He could avoid prison as part of an agreement with prosecutors.
Irvine’s Epicor Software Corp. is cutting jobs in a bid to save money. Epicor didn’t say how many workers are set to be cut. It has some 277 employees in Irvine and about 3,000 worldwide. The move is expected to save the company $16 million to $20 million a year, after an initial payout of $4 million in restructuring charges.
HEALTHCARE
A few weeks after rejecting a hostile takeover bid, Irvine device maker Endocare Inc. is acquiring Galil Medical Ltd., an Israeli company. The stock-for-stock deal will lead to current Endocare shareholders owning 52% of the combined company, with Galil stockholders owning 48%. Endocare didn’t disclose the total value of the deal. The combined company, which will retain the Endocare name, will focus on cryoablation, a minimally invasive process to freeze and destroy cancerous tumors.
Maureen Zehntner, the head of University of California Irvine Medical Center said she will retire in March. Zehntner was named chief executive officer in 2005 amid a hospital scandal and has overseen the construction of a new hospital building in Orange. In a memo to staff, Zehntner, said she had “very mixed emotions,” but was leaving for personal reasons.
Valeant Pharmaceuticals International bought DermaTech Pty Ltd., an Australian company, for $12.2 million. Aliso Viejo-based Valeant said buying DermaTech expands its Australian specialty drug business.
REAL ESTATE
Irvine-based mortgage investor Impac Mortgage Holdings Inc. posted a third-quarter loss of $16.2 million and said it is ending a profitable partnership with a local auction company to sell foreclosed homes. Impac said it is being paid $37 million to end its deal with Irvine-based home auctioner Real Estate Disposition Corp., which uses Impac as its primary source of foreclosed homes.
FINANCE
Newport Beach-based mortgage lender Downey Financial Corp. formally warned investors that it might be seized by regulators before the end of the year if it can’t raise additional capital. In a report filed with the Securities and Exchange Commission last week, Newport Beach-based Downey noted that it was under regulatory orders to maintain specific capital levels.
GOVERNMENT
The Seal Beach City Council approved a comprehensive $96.6 million plan for a new drainage master plan, which is expected to take 20 years to complete. Two new pump stations, the addition of nearly 100 pipelines and upgrading existing lines will help pull water off the streets, officials said. The master drainage plan is preliminary and would require further study as each individual project comes up for approval.
OTHER NEWS
The parent company of the Orange County Register is cutting production of its Phoenix-area paper as it deals with an ongoing industry downturn. Irvine-based Freedom Com- munications Inc. plans to cut production of The East Valley Tribune in suburban Phoenix from seven to four days a week. The East Valley Tribune, with a combined paid and free circulation of 100,000, will be the largest daily paper in the country to cut the number of days its prints. The change is set to take effect in January.
Irvine-based Taco Bell Corp. is set to see an undisclosed number of layoffs as its parent company cuts hundreds of jobs. Louisville, Ky.-based Yum Brands Inc. said Wednesday it is cutting “several hundred” jobs at Taco Bell and its Pizza Hut subsidiary. Cuts are coming at Yum’s Kentucky headquarters, at Pizza Hut’s base in Dallas and in Irvine at Taco Bell, the company said. It wasn’t disclosed how many jobs would be cut at Taco Bell, which employs about 600 people in the county.
ECONOMIC INDICATORS
Down: Homeownership as foreclosures on Orange County homes more than tripled in the third quarter, according to MDA DataQuick.
