Automotive
Kia Motors Corp.’s logo will appear on player jerseys during the National Basketball Association’s next two All-Star games—in Toronto in 2016 and Charlotte, N.C., in 2017. The deal—the league’s first—is part of Irvine-based Kia Motors America Inc.’s media buy with Turner Sports, which broadcasts all NBA games and manages NBA.com together with the league. Kia has been the official automotive partner of the NBA since 2008 and individually sponsors 14 teams. Its K900 sedan is the league’s official luxury vehicle, and it has a number of players as endorsers, including LeBron James.
Economy
Cal State Fullerton economists project that Orange County will add more than 40,000 jobs this year, up 2.7% over last year, though they expect the job growth pace to slow over the next two years. The economists predict unemployment will drop from an average of 4.4% this year to 4.3% next year.
Education
Brandman University in Irvine will invest $2 million, or 40%, of its endowment in the company that provides the online platform for a new degree program the school launched last month. The investment in Washington D.C.-based Flat World Knowledge Inc. is structured as an “exempt offering of securities,” according to that company’s regulatory filing with the U.S. Securities and Exchange Commission. Flat World was founded in 2007 to digitize textbooks and has evolved into a delivery system for courses via an online platform. It works with about 2,500 institutions worldwide.
Healthcare
Allergan PLC and Pfizer Inc. confirmed the two companies were discussing a merger. Allergan maintains a hub for its eye-care and aesthetics business lines in Irvine; the parent company is based in Dublin, Ireland, for tax purposes and operates from New Jersey. Pfizer is in New York City. The combination would be the largest corporate takeover this year. News reports said Pfizer approached Allergan to take advantage of tax advantages that come from being based in Ireland and for Allergan’s patent-protected drugs. Pfizer previously approached Actavis PLC—the precursor company to Allergan that purchased the Irvine drugmaker this year for more than $72 billion and took its name (see related OC Insider item, page 3).
Manufacturing
Irvine-based True Drinks Holdings Inc. drew an additional $1 million investment from Vinny Smith and hired a local bottler to handle its signature AquaBall product, a flavored water with no sugar. Niagara Bottling LLC, also based in Irvine, agreed to produce 3.2 million 24-pack cases annually for True Drinks under a five-year deal. True Drinks will pay Niagara $6.35 per case for an annual cost of $20.3 million, a regulatory filing said. True Drinks said the deal allows for a lighter bottle and the removal of preservatives from its product—both of which are expected to improve the public perception of the brand. Smith heads Toba Capital and started Quest Software Inc., which he sold to Dell Inc. in 2012 for about $2.8 billion.
Restaurants
Del Taco will close all of its Texas locations but one. A dozen restaurants will close, and 218 workers will be laid off, according to Texas state documents. A location in Fort Worth will apparently continue to operate. The decision is for “financial reasons” and is an about-face of earlier plans to open dozens of restaurants in the state.
Services
Santa Ana-based security services company Universal Protection Service acquired ABM Security Business for $131 million. Houston-based ABM Security is a division of ABM Industries Inc., a New York City-based facility management company. ABM Industries has about $5 billion in annual revenue and 120,000 employees. Universal Protection is part of Santa Ana-based Universal Services of America Inc.
Technology
Costa Mesa-based Connectifier said it raised $6 million in Series B funding led by Goldcrest Investments LP in Dallas. The company makes software for corporate recruiters and said it has annual sales of about $10 million. It closed a $6 million Series A round in June led by True Ventures with participation by Galeo Ventures, Okapi Ventures and angel investors Sean Ellis, Andrew Chen, Jonathan Downey and James Hong. Connectifier said it has 482 clients, including Fortune 100 companies.
