Stories in this week’s Orange County Business Journal
TOP STORIES
Private equity firm Kohlberg Kravis Roberts & Co. dropped out of a bidding group for Brea-based medical equipment maker Beckman Coulter Inc., according to Bloomberg. KKR had been part of a bid with San Francisco-based TPG Capital and New York’s Blackstone Group LP, according to the report. A second private equity group made up of New York-based Apollo Global Management LLC and Carlyle Group of Washington, D.C., still is in the running for Beckman. Danaher Corp., a Washington, D.C.-based conglomerate that owns Orange dental products maker Sybron Dental Specialties Inc., also is bidding for Beckman. KKR pulled out over concern that bids were growing too high amid interest from Danaher, according to Bloomberg. Beckman has a market value of nearly $5 billion, up about 25% since word of a potential sale broke in December.
The Orange County Fair Board rejected former Gov. Arnold Schwarzenegger’s plan to sell the 150-acre fairgrounds in Costa Mesa. The board proposed a revenue-sharing arrangement with the state of California and announced plans to seek a partner “to advance development” of the site’s 8,500-seat Pacific Amphitheater. Schwarzenegger initiated a sale of the property, along with some state office buildings and other assets, to raise cash and help reduce the state’s $25 billion budget deficit. Facilities Management West, a Costa Mesa-based consortium headed by the Fait family trust, has a deal to buy the fairgrounds for $100 million. Opponents of the sale got a temporary restraining order blocking the deal. A court hearing is scheduled for Feb. 8, although new Gov. Jerry Brown is expected to weigh in before then.
TECHNOLOGY
Fountain Valley’s Kingston Technology Co., the top maker of memory products for computers, is said to be making an undisclosed investment in Tawainese chipmaker JMicron Technology Corp., according to reports. JMicron makes controller chips for solid state drives. Kingston started to use JMicron’s chips in its solid state drives last year, according to a report in Asian tech news website digitimes.com. JMicron is set to vote on a proposal to raise money, the report said.
HEALTHCARE
Irvine-based Amerita Inc., which delivers intravenous drugs to patients in their homes, bought Advantage Infusion Services in San Antonio, Texas, for undisclosed terms. Privately held Amerita has more than $55 million in annual revenue and 13 locations in Colorado, Oklahoma, Tennessee, Texas and Utah.
REAL ESTATE
Beverly Hills Hospitality Group is seeking approvals for a 250-room hotel in Dana Point. The development would replace the 40-room Dana Point Harbor Inn near Doheny State Beach. The developer has agreed to pay about $150,000 for an environmental impact report. The project need approvals from the city and the California Coastal Commission.
A group called Citizens for Sensible Development qualified a referendum against a recently approved housing development for the March 8 ballot in San Juan Capistrano. The City Council approved the Distrito La Novia/San Juan Meadows project by Lake Forest-based Advanced Real Estate Services Inc. for 130 houses, 500 horse stables and some commercial space. Citizens for Sensible Development surpassed the 2,000 signatures needed for the referendum. The council could rescind its approval for the project during a Feb. 1 meeting.
City officials in Irvine cut a development fee for traffic improvements by 75% as a way to stimulate apartment and condominium construction in the Irvine Business Complex, a 2,800-acre area near John Wayne Airport. Officials said the city can afford the cut because several road projects that had been planned are no longer on the drawing board.
APPAREL
The Australian parent company of Irvine-based clothing maker Billabong USA could be a takeover target, according to an analyst. Billabong International Ltd.’s market value and collection of “well managed brands” make it a potential acquisition amid an expected pickup in retail deals, Deutsche Bank AG analyst Alexi Baker-McLennan wrote in a note to clients. Billabong, which makes clothes inspired by surfing and skateboarding and also runs stores, had a recent market value of about $1 billion. The company’s Australian shares are 30% lower than their 12-month high hit last spring.
OTHER NEWS
Canadian discount airline WestJet chose Vancouver, British Columbia, and Calgary, Alberta, as destinations for daily flights from John Wayne Airport. Service to Vancouver is set to begin on May 2 and to Calgary on June 13.
ECONOMIC INDICATOR
Up: Venture capital funding in Orange County, which accounted for $639.9 million worth of investments here in 2010, a 152% increase from a year earlier. Venture capitalists invested in 66 companies here, up 44% in number of deals, according to Dow Jones VentureSource.
