French yogurt-maker Danone last week announced a $12.5 billion deal to buy The WhiteWave Foods Co., a Denver-based producer of plant-based foods and beverages that has a manufacturing facility in Jacksonville.
Danone is paying $56.25 a share to buy WhiteWave, a 24 percent premium to its average closing price of $45.43 in the 30 days prior to the deal. It’s a huge premium for investors who got in on WhiteWave’s October 2012 initial public offering at $17 a share.
WhiteWave was spun off from Dean Foods Co. in the IPO.
The company has grown sales by 19 percent a year since the IPO, reaching $4 billion last year with a line of products it describes as “plant-based alternatives to milk and yogurt, fresh foods, and coffee creamers.”
Its products are sold under several brands including Silk, So Delicious and International Delight.
WhiteWave operates 11 food and beverage plants in the U.S. and three in Europe.
The company in January began a $2.3 million expansion of its Westside Jacksonville plant, which employs about 100 people.
In a memo to employees Thursday after the acquisition was announced, WhiteWave CEO Gregg Engles said the deal should be a positive for them.
“Danone has a meaningful manifesto that embodies its commitment to support people to adopt healthier choices and lifestyles, and care about the health and wellness of its employees, its communities and the planet for current and future generations,” he said.
In a news release, Engles said shareholders should also be happy.
“We believe this is a compelling transaction that delivers significant cash value to our shareholders. Danone is a unique company with distinctive capabilities that will enable WhiteWave to reach its next phase of growth,” he said.
Danone said the deal allows the company to expand its North American footprint, where it offers yogurt products under the “Dannon” label and also sells other food and beverage products such as Evian bottled water.
The acquisition, expected to close by the end of the year, will increase North American sales from 12 percent to 22 percent of Danone’s business. The company’s total sales were 22.4 billion euros (about $25 billion) last year.
“We believe WhiteWave’s size, positioning and geographical footprint fit perfectly with Danone’s strategy and that it is the right transaction at the right time,” Danone Chairman Frank Riboud said in the news release.
Convergys Corp. expands in Germany
Convergys Corp. also announced an international acquisition last week.
The Cincinnati-based provider of outsourced customer service agreed to buy a Germany-based company called buw for 123 million euros (about $136 million).
Convergys said buw is the largest owner-operated customer management company in Germany and will add 16 sites and 6,000 employees in Germany, Hungary and Romania.
Convergys already has 130,000 employees in 31 countries.
The company has about 1,200 employees in Jacksonville.
International Speedway drops despite race
International Speedway Corp. says its Coke Zero 400 at Daytona race over the Fourth of July weekend produced increased attendance and revenue.
However, as the stock market reopened Tuesday after the holiday weekend, Daytona Beach-based International Speedway’s stock dropped as the racetrack operator reported disappointing earnings.
The operator of the Daytona International Speedway and 12 other motorsports facilities reported adjusted earnings of 29 cents a share for the second quarter ended May 31, down from 35 cents the previous year and 3 cents lower than the average forecast of analysts, according to Thomson Financial.
The results of course don’t include the spike in revenue from the Coke Zero 400, which will be included in third-quarter results. But International Speedway also lowered its forecasts for the full fiscal year.
The company now expects revenue of $658 million to $665 million, compared with its previous forecast range of $660 million to $670 million.
It projects earnings at $1.45 to $1.55 a share, compared with a previous forecast of $1.45 to $1.60.
International Speedway’s stock fell $1.98 to $32.24 Tuesday after the earnings report.
The company said its “Daytona Rising” project, a major expansion of its Daytona Beach facility, is progressing well and is expected to produce an additional $15 million in earnings before interest, taxes, depreciation and amortization by the end of this fiscal year.
In addition to upgrades at the track, the company has also begun construction of a mixed-use project across the street called “One Daytona.”
The first phase consists of 300,000 square feet of retail, dining and entertainment venues and is expected to open next year with development costs of $120 million to $150 million.
International Speedway has already spent $375.6 million of the expected $400 million cost of Daytona Rising.
“We maintain a solid financial position, developed over many years, that affords us the ability to follow our disciplined capital allocation strategy and maintain our leadership position in the motorsports industry,” CEO Lesa France Kennedy said in a news release.
“For the future, we are well positioned to balance the strategic capital needs of our business with returning capital to our shareholders,” she said.
Regency Centers’ stock up again
Regency Centers Corp.’s already rising stock reached its highest level in almost a decade last week after a positive report on its California properties.
Citigroup analyst Michael Bilerman visited San Francisco and Los Angeles properties owned by seven real estate investment trusts, including Jacksonville-based Regency, and characterized the mood as “upbeat,” according to a report by Barron’s newspaper.
Citigroup generally does not provide its analyst reports to the media.
Regency operates 314 retail properties across the country, mainly grocery-anchored shopping centers. California is its biggest market, with 61 properties listed on its website.
Regency’s stock rose $1.35 to $85.09 Tuesday after Bilerman’s report and reached as high as $85.35 Wednesday, its highest price since the stock peaked at $93.48 in early 2007.
The stock was up 25 percent since the beginning of this year when it reached its high on Wednesday.
ParkerVision sells $3M more in stock
ParkerVision Inc. doesn’t generate a lot of revenue but it continues to attract new investment capital.
The Jacksonville-based developer of wireless technology last week announced it sold 1.09 million shares of stock at $2.75 each in a private placement, generating gross proceeds of about $3 million.
ParkerVision didn’t name the investor in its news release, saying only it was an “accredited investor.”
A Securities and Exchange Commission filing listed the investor as “BTCity Manager LLC,” but there was no other information about the investor available.
EverBank’s mortgage business rated
Two ratings agencies last week offered assessments of different aspects of Jacksonville-based EverBank’s mortgage operations.
Moody’s Investors Services rated EverBank as a “strong” originator of prime jumbo residential mortgage loans, its highest rating level.
Moody’s said in a news release its latest review of the bank was consistent with previous reviews “with the exception of quality control and audit, which increased to strong from above average.”
The ratings agency said EverBank’s weakest area is its “average” financial strength.
“Since our last assessment, there has been some weakness in this category due to high loan growth which is increasing asset risk and has a negative impact on capital and funding. Management stated that EverBank’s balance sheet is expected to grow on a more selective basis going forward,” it said.
Meanwhile, Fitch ratings affirmed its residential primary servicer rating at level 3, the middle of five levels, with a “stable” outlook.
Fitch said in a news release its rating takes into consideration the termination in January of a mortgage servicing-related consent order against EverBank by federal regulators.
That order restricted some of EverBank’s servicing business until operations improved.
“Fitch believes the realignment of EverBank’s servicing platform coupled with the higher quality of new loan originations will materially improve the servicer’s loan performance metrics. Fitch will continue to monitor EverBank’s effectiveness in recruiting and retaining experienced personnel needed to perform all servicing functions,” it said.
Green Energy cancels deal
Jacksonville-based Green Energy Enterprises Inc. called off its planned acquisition of BEO-ITS Inc., a bio-medical company that has developed a testing process for sexually transmitted infections.
Green Energy announced the agreement in March but said in a June 30 news release it decided the deal was not in the best interest of shareholders.
“BEO-ITS sought highly conditional terms that would result in substantial dilution to the existing shareholders,” it said in a news release.
Green Energy, formerly known as Quasar Aerospace Industries Inc., operates a flight training school at Herlong Airport and a hydroponic grow store in Colorado.
The company reported revenue of $359,804 in 2015.