Healthcare
Irvine-based healthcare REIT HCP Inc. said it will cut the amount its Brookdale Senior Living unit contributes to earnings from 27% to about 16%. The Brentwood, Tenn.-based senior housing operator’s declining occupancy rate has dragged down HCP shares. HCP said it will sell six assets to Brookdale for $275 million and exit two joint ventures with the operator by buying Brookdale’s 10% interest for $99 million. Brookdale also agreed to end management deals on 36 senior housing operating properties and leases on 32 triple-net leased communities.
— Sherry Hsieh
San Clemente-based CareTrust REIT Inc. acquired a three-facility, 529-bed skilled nursing portfolio in Southern California from Providence Group Inc. for $69 million. The portfolio will yield approximately $6.1 million in initial annual cash rent. It also provided the Farmington, Utah-based senior care facility owner and operator a $12.5 million mortgage financing on a fourth, 104-bed skilled nursing facility in the region at a 9% annual interest rate. It was unclear which cities CareTrust bought in.
— Sherry Hsieh
Allergan PLC received Chinese regulatory approval for Ozurdex, an eye implant designed to treat adults with macular edema following retinal vein occlusion—an eye stroke. The company says Ozurdex is the first approved intravitreal injection for the condition in China. The implant eliminates the need for monthly injection. Allergan says retinal vein occlusion affects about 7.4 million patients in China. The treatment is approved in the U.S. The device is part of Allergan’s Irvine campus.
— Sherry Hsieh
Hospitality
Wincome Group said Carmine Iommazzo is the new general manager at Westin Anaheim Resort, a $250 million hotel under construction on the site of the former Anabella Hotel next to Anaheim Convention Center. The four-diamond-level property is scheduled to open by 2020.
— Paul Hughes
Services
Resources Connection Inc. in Irvine bought Accretive Solutions Inc. in Chicago for $19.4 million and 1.15 million shares of restricted common stock. RCI is a business consultancy operating as Resources Global Professionals with about 3,300 employees. Accretive provides consulting, staffing and outsourced accounting, among other professional services, from eight locations with about 500 employees. Resources Connection projects the deal will boost revenue by $65 million to $70 million by the end of next year.
— Paul Hughes
CoolSys in Brea bought Certified Refrigeration and Mechanical Inc. in Madison, Wis., on undisclosed terms.
CoolSys is the new national brand of Source Refrigeration & HVAC Inc. in Anaheim and its national stable of commercial heating, refrigeration and air conditioning systems, sales and service firms. It’s majority-owned by Boston private equity firm Audax Group, and the buy is Audax’ third follow-on acquisition, bringing CoolSys into Wisconsin, where CRM has 10 sites.
— Paul Hughes
Technology
Chipmaker Broadcom Ltd. plans to change its headquarters designation to the U.S. from Singapore, the company said at a press conference that included President Donald Trump. It intends to be domiciled in Delaware, though U.S. operations are led from San Jose, where it shifted corporate influence early last year. The chipmaker is chartered in Singapore and maintains a large OC presence. Broadcom is pursuing Brocade Communications Systems Inc., also based in San Jose, a deal under scrutiny by the Committee on Foreign Investment in the U.S., which has held up the sale three times. The U.S. headquarters designation could alleviate some of its concerns, since a foreign company would no longer lead the deal.
— Chris Casacchia and Paul Hughes
Transportation
Ross Aviation and Gulfstream Aerospace Corp. responded by the deadline to a Long Beach Airport request for proposals on the development of 31 acres near the facility. Denver-based Ross bought the AirFlite fixed-base operations at the airport last November. AirFlite was a unit of Toyota Motor Sales, which sold the FBO as part of moving its North American headquarters from Torrance to Texas. The city of Long Beach, which owns the airport, said a response by only a few bidders was somewhat expected because of the restrictions on the project, which is devoted to aeronautical uses without generic real estate components.
— Paul Hughes
