PIZZA DEAL: After more than a year of searching for a suitor, California Pizza Kitchen Inc. has reached a definitive agreement with an affiliate of Golden Gate Capital to be acquired for about $470 million in cash. The $18.50-per-share price that San Francisco-based Golden Gate agreed to pay is a premium of about 11 percent over the L.A. restaurant chain’s closing price May 24. Like other restaurant companies that have sought partners, CPK has been facing rising food costs at the same time it continues to deal with fewer diners or customers who order less when they do eat out.
ACQUISITION: Calavo Growers Inc. has agreed to acquire Renaissance Food Group LLC, which operates six fresh-food processing facilities across the country, for an undisclosed amount. Calavo, a Santa Paula marketer of avocados, avocado products, refrigerated fresh salsa and guacamole hummus, said Rancho Cordova-based Renaissance has the potential to significantly expand its business. Renaissance’s plants, which include facilities in Sacramento and Houston, make deli-style sandwiches, grab-and-go salads and party trays.
BOUGHT: National Instruments Corp. has signed an agreement to acquire AWR Corp., an El Segundo developer of design software for radio and microwave equipment, in a deal valued at $58 million. National Instruments, based in Austin, Texas, said that privately held AWR would continue to operate in El Segundo as a wholly owned subsidiary under existing management. The value of the deal includes $7 million in cash on AWR’s balance sheet, plus earn-outs payable over the next three years. AWR’s software is used in the semiconductor, aerospace, test equipment and communications industries.
JOBLESS RATE: Los Angeles County’s unemployment rate fell to 12.1 percent in April – the lowest since December 2009 – as more residents reported finding work. The county also saw a modest increase of 13,000 payroll jobs, led by small gains in the health care and leisure-hospitality sectors. The unemployment rate in April was down a bit from a revised 12.3 percent in March and 12.4 percent in April 2010. The figures showed 60,000 more residents reported they were working in April compared with March.
PAYBACK: Bratz doll maker MGA Entertainment Inc. has asked a judge to triple the $88.4 million in damages it won from Mattel Inc., and to award it attorney fees, restitution and other costs from the seven-year fight over rights to the dolls. In a proposed order filed in federal court in Santa Ana, Van Nuys-based MGA asked for $339 million, including $4.3 million in restitution from Mattel based on unfair competition claims. MGA has argued that El Segundo-based Mattel set out to destroy most of the value of its business through years of litigation. Mattel claimed that the Bratz doll line was first drawn while its designer was working for Mattel.
EXPANDING: Walt Disney Co. intends to triple the number of interactive-concept Disney Store locations by opening 40 more retail stores this year around the world. The Burbank entertainment giant, which has 340 stores worldwide, said the planned openings would bring the total number of interactive stores to 60. The new format includes special attractions, such as a child-size “magic mirror” castle showing Disney movie clips and a workshop area for children to build custom toy cars. Among the new locations will be a store at Westfield Fashion Square in Sherman Oaks.
NEW PARTNER: GameFly Inc. has acquired Direct2Drive.com, a videogame distribution and download service owned by News Corp.’s IGN Entertainment, in a deal that includes IGN taking a minority stake in GameFly. GameFly of Los Angeles rents games through the mail on the Netflix model. The acquisition of San Francisco-based Direct2Drive will expand GameFly’s ability to deliver games to consumers for a variety of platforms. Terms of the deal were not disclosed. IGN’s minority equity stake in GameFly gives News Corp. an observer seat on GameFly’s board. Direct2Drive has regional offices in Los Angeles.
EARNINGS: Guess Inc. reported net income of $42.7 million, 15 percent lower than a year earlier. Sales rose 10 percent to $592 million. … 99 Cents Only Stores reported net income of $17.9 million, 6 percent higher a year earlier. Revenue rose 11.5 percent to more than $378 million.
