LOWER IPO: Agricultural biotech Ceres Inc. reduced the estimated price range of its initial public offering of 5 million shares to $16 to $17 each before its scheduled launch. Based on the price, the Thousand Oaks company expects to receive net proceeds of $72.2 million, according to a regulatory filing. The company expects to have about 24 million shares outstanding after the offering, most held by early investors and insiders. Shares will trade on Nasdaq. Ceres, which is developing seeds for crops used to make biofuels, earlier expected to price shares between $21 and $23, and net about $97.8 million. But a volatile market has prompted it and a number of other companies to pull back on IPO expectations. The company will use IPO proceeds to develop and commercialize its seeds.
DIVISIONS SOLD: Oversee.net, an L.A. domain name and online marketing firm, has sold two of its noncore units to KeyDrive S.A. an Internet company in Wasserbillig, Luxembourg. KeyDrive, which did not disclose terms of the deal, said the acquisitions of Moniker and SnapNames fit its global expansion strategy, and will provide European clients with better access to U.S. buyers and sellers of domain names. The company provides domain registration, monetization and aftermarket services. Privately held Oversee acquired Moniker in January 2008 and SnapNames in June 2007. Moniker was a pioneer in the live domain-name auction business. SnapNames operates what is considered the largest auction of expired and deleting domain names.
BETTER DAYS: American Apparel Inc. has announced that year-to-year total apparel sales jumped 14 percent in January, marking the fourth straight month of improvement for the struggling company. The L.A. company said same-store sales grew 11 percent and online sales rose 39 percent. Wholesale net sales were up 21 percent. “I am very encouraged by the sales performance of the company,” Chief Executive Dov Charney said in a statement. American Apparel faced a liquidity crisis a year ago that put it on the brink of bankruptcy.
SOFTWARE DEAL: Guidance Software Inc. said that it would acquire CaseCentral, a private San Francisco developer of cloud-based, case-discovery software used by law firms and corporations. The deal is valued at $17.1 million, with Pasadena-based Guidance paying $8.3 million in cash and $8.3 million in stock. It also will assume about $500,000 in debt. CaseCentral’s owners will have the opportunity to receive a $33 million earn-out based on performance. Guidance said it expects to add about $10 million in revenue from the acquisition this year alone. “This acquisition will extend Guidance Software’s market leadership by delivering a complete and integrated platform for the e-discovery needs of corporate and government customers,” Chief Executive Victor Limongelli said in a statement.
EATERY SALE: Real Mex Restaurants Inc., the bankrupt operator of the El Torito, Chevys and Acapulco chains, announced that its board has approved the company’s sale to a group of debt holders that includes Tennenbaum Capital Partners of Santa Monica. The sale of nearly all the assets of the Cypress-based company to an entity that includes Chicago private-equity firm Z Capital Partners and J.P. Morgan Investment Management was pending approval in U.S. Bankruptcy Court. A hearing was scheduled for Feb. 10. Real Mex was the largest operator of full-service Mexican restaurants in Los Angeles County, with about 30 locations, at the time of its October bankruptcy filing. The company, which operates 144 restaurants, has shut down 30 outlets nationwide.
MERGER MADE: LAC Group, an L.A. company specializing in global information management and professional services recruitment, has announced a merger with Chase Cost Management, a New York services firm. Chase Cost will become a division of LAC. The companies combined had $25 million in revenue last year. LAC, formed in 1986, has clients that include NASA, BP and the Library of Congress. Chase Cost, founded in 1998, advises major law firms on how to reduce vendor and other expenses. “This merger yields the advanced quality of managed services our clients need,” LAC Chief Executive Deborah Schwarz said in a statement.
OBITUARY: Patricia Ann Disney, a San Fernando Valley philanthropist and former wife of the late Roy Disney, died at her Toluca Lake home. She was 77. Among her legacies was the Valley’s first comprehensive cancer treatment facility, the Roy and Patricia Disney Family Cancer Center at Providence St. Joseph Medical Center in Burbank. The Disney family provided a $10 million seed donation to launch the hospital’s community fundraising campaign. Roy Disney, a billionaire investor who was the nephew of Walt Disney, died of cancer in December 2009, a few months before the center opened. A native of New Orleans, the former Patricia Daily married Disney in 1955. They raised four children before divorcing in 2007.
CREDIT ANNOUNCED: Metro-Goldwyn-Mayer Inc. has closed a $500 million revolving credit facility with a syndicate of banks, the studio announced. MGM, which emerged from bankruptcy in December 2010, plans to use the credit facility to retire existing debt, and develop TV shows and feature films. The Beverly Hills studio is partnering with Sony Pictures Entertainment to co-finance and distribute the next James Bond movie, “Skyfall,” starring Daniel Craig. The credit facility was led by JP Morgan Chase and Deutsche Bank, and included Bank of America, Merrill Lynch, SunTrust Banks, Wells Fargo, City National Bank and OneWest Bank.
FUNDRAISING: Leads360, an L.A. company that helps businesses follow up on sales leads, said it has completed a $15 million Series B fundraising round led by Volition Capital. The sales-lead management software and service company will use the money to expand its product offerings, pursue strategic partnerships and increase awareness of its platform. Also participating in the round was existing investor Rustic Canyon Partners.
EARNINGS: Walt Disney Co. reported net income of $1.46 billion for the quarter ended Dec. 30, compared with $1.3 billion in the same period a year earlier. Revenue rose 1 percent to nearly $10.8 billion. … Macerich Co. reported fourth quarter net income of $163 million, compared with $23.6 million in the same period a year earlier. Revenue rose 6.8 percent to nearly $218 million. … Health Net Inc. reported net income of $60.2 million compared with $80.4 million in the same period a year earlier. Revenue fell 17 percent to $2.8 billion. … THQ Inc. reported a fiscal third quarter net loss of $55.9 million for the period ended Dec. 31, compared with a loss of $14.9 million in the same period a year earlier. Revenue fell 3 percent to $305 million. … Guidance Software Inc. reported net income of $2.3 million, compared with a net loss of $446,000 in the same period a year earlier. Revenue rose 15 percent to $29.9 million. … Aecom Technology Corp. reported net income of $47.9 million for the quarter ended Dec. 31, compared with $56.9 million in the same period a year earlier. Revenue rose 4.8 percent to $2.03 billion. … Tetra Tech Inc. reported net income of $22.6 million for the quarter ended Dec. 31, compared with $22.3 million in the same period a year earlier. Revenue jumped 21 percent to $492 million. … ValueClick Inc. reported net income of $29.4 million, compared with $21.1 million in the same period a year earlier. Revenue rose 42 percent to nearly $183 million.
