AIRLINE DEAL: The Los Angeles Board of Airport Commissioners has approved a settlement between Los Angeles World Airports and Alaska Airlines Group that will enable LAX to move forward with a $271 million renovation of Terminal 6. Alaska Airlines and three other airlines sued the airport agency in 2007, alleging that it unfairly levied a tariff to cover increased security costs. The airline has agreed to drop the suit as part of a deal that will make it the primary tenant of the renovated terminal for at least 10 years. The announcement did not address the status of the other plaintiffs.
FILMING STATS: Permitting agency FilmLA Inc. said that a spike in student films, music videos and other small projects boosted location shooting in Los Angeles by 4.7 percent in the first quarter of this year. The small-project increase came in contrast to declines in feature shooting and TV production. Feature film production declined by 5.3 percent compared with the previous year, while a decrease in reality shows and drama activity led to television production dropping by 3.7 percent during the quarter. In contrast, sitcoms soared by 77 percent, thanks to single-camera cable programs such as “Californication” and “United States of Tara,” which are heavily filmed on location.
ACQUISITION: Aerospace supplier Ducommun Inc. is planning to acquire electronics maker LaBarge Inc. in a deal valued at $305 million. The Carson maker of aircraft components said acquisition of the St. Louis company would nearly double its revenue base, and provide access to new customers and markets. LaBarge makes electronics systems and subsystems used in airport security equipment, military aircraft, radar systems, satellite launch vehicles, glass containers and oil field tooling. The deal, which will pay LaBarge shareholders $19.25 per share in cash with Ducommun assuming LaBarge’s outstanding debt, must be approved by shareholders and antitrust regulators.
RETIRING: After leading the Port of Long Beach for 14 years, Executive Director Richard Steinke said he will step down Sept. 30. During his tenure, Steinke planned major expansions and initiated the Green Port Policy that includes the Clean Trucks Program. The port also developed the former Long Beach Naval Complex, which became one of the country’s largest container cargo terminals. The Board of Harbor Commissioners said it would begin a search for Steinke’s successor.
LEAVING: Farmer Bros. Co. Chief Executive Roger Laverty III is stepping down April 19 and will retire at the end of the company’s fiscal year in June. Laverty, 63, has been with the Torrance coffee roaster and institutional food service company for five years. After a long period of stagnation, Laverty is credited for growing Farmer Bros. into one the nation’s largest delivery businesses for coffee, tea and culinary products. Chief Financial Officer Jeffrey Wahba and President Patrick Criteser will share chief executive duties until a replacement is found.
ON HOLD: A controversial proposal to build a $160 million hotel and conference center on the UCLA campus has been put on hold pending a study of the project’s finances. The decision comes only days after the Academic Senate’s Council on Planning and Budget issued a statement opposing the project, which received a $40 million donation from prominent UCLA alumnus Meyer Luskin and his family. The 282-room project is proposed for the east side of campus on the site of the 50-year-old Faculty Center, which would be razed and rebuilt elsewhere. The project also was opposed by Westwood residents and several nearby hotel owners.
STOCK OFFERING: Kilroy Realty Corp. has launched a public offering of 5.3 million shares and priced them at $38.25 each. The L.A. real estate investment trust also granted underwriters a 30-day option to buy up to 787,500 additional shares to cover excess demand. When it priced the secondary offering, Kilroy raised the size from its original 4.5 million shares with a 675,000-share overallotment option. The company expects net proceeds, excluding the overallotment shares, to be about $192 million, and will use the money to buy four office buildings in the Seattle suburb of Kirkland for $100 million.
MOVING: The Hollywood Reporter and five associated businesses and publications are moving several blocks down the street to the Miracle Mile’s Wilshire Courtyard complex. The businesses, owned by New York-based Prometheus Global Media, are taking the entire fifth floor at 5700 Wilshire Blvd. The 10-year lease for 27,040 square feet is valued at more than $12.5 million. The organization could move in as soon as June. Wilshire Courtyard was formerly home to rival Hollywood trade publication Variety, which moved to a high-rise several blocks west at the end of 2008.
INVESTMENT: Teledyne Technologies Inc. of Thousand Oaks has announced its Dalsa subsidiary has acquired a minority interest in laser-based survey and digital imaging company Optech Inc. The Vaughan, Ontario, company makes systems used in airborne ground mapping and laser imaging as well as sensors for orbital operations and planetary exploration. Its customers include governments, and companies in the energy, natural resources and infrastructure industries. Terms of the deal were not disclosed.
EARNINGS: KB Home reported a fiscal first quarter net loss of more than $114 million, compared with a loss of $54.7 million a year earlier. Revenue fell 25 percent to less than $197 million. … Electro Rent Corp. reported net income of $5.08 million, 136 percent higher than year earlier. Revenue rose 80 percent to $59.5 million.
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