Business Briefs: THQ, Electro Rent, Platinum Equity, Levine Leichtman

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& #8226; THQ Inc.

reaffirmed its third-quarter forecast, saying holiday sales of its games are meeting expectations. In late October, THQ projected its third-quarter earnings at 65 cents per share on sales of $320 million. Analysts are expecting earnings of 66 cents per share on revenue of $323.2 million. The Agoura Hills-based video game publisher said its “WWE SmackDown vs. Raw 2006” title is performing well on both PlayStation2 and the PSP PlayStation Portable systems. THQ plans to report financial results for the third quarter in late January or early February.



& #8226; Electro Rent Corp.

said it will acquire privately held Rush Computer Rentals Inc. for $9.5 million in cash, plus a payout tied to financial performance. The Van Nuys-based company engaged in the rental and leasing of computer equipment plans to fund the transaction with cash on hand, and expects the acquisition to be accretive to earnings immediately. The transaction is expected to close by Jan. 31. Wallingford, Conn.-based Rush, which rents and sells personal computers to customers mainly in the Northeast, had revenue over the past year of approximately $10 million.



& #8226; Platinum Equity Group

completed its acquisition of Amherst, N.Y.-based ESM Group Inc., a provider of products and services to the steel industry, from Dusseldorf, Germany-based Degussa AG. Degussa divested ESM to focus on the company’s core specialty chemicals business, said the Beverly Hills-based acquisition firm owned by billionaire Tom Gores. In fiscal 2004, ESM had 275 employees and generated sales of about $150 million. Platinum intends to grow ESM’s market share in several key areas, including the desulphurization and secondary chemical marketplaces.



& #8226;

Nearly two months after Fox & Hound Restaurant Group said it signed an exclusive letter of intent to be acquired by L.A.-based private equity firm

Levine Leichtman Capital Partners

for $14 a share, the Wichita, Kan.-based operator of casual dining restaurants said that an earlier bid of $14.50 a share in cash by Newcastle Partners, LP and Steel Partners II, LP is a superior offer.


Fox & Hound investors had sued in early October, saying they would be shortchanged if Levine Leichtman’s $140 million deal goes through. The suit by Primavera Investors LLC asked a judge to stop the buyout and award damages. The statement on Wednesday did not reference the suit.

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