Corporate Report

Corporate Report

by Sean Roth | Real Estate Editor

Middle East investment firm

buys PODS for $430 million

An affiliate of the Bahrain private equity investment firm Arcapita Inc. purchased Clearwater-based Pods Inc. for a reported $430 million.

The company, which reported revenue of $132 million for 2005, popularized the use of mobile storage containers for transportation and storage. Peter S. Warhurst founded the company in 1998. In July, the company started exploring its business structure options in order to increase its value to shareholders. The company has more than 130,000 portable containers in service.

Earlier this month, Arcapita acquired Dallas-based Varel International, a manufacturer of drill bits for the oil and gas industries, for $401.4 million.

Morgan Stanley served as exclusive financial advisor to PODS. Jones Day acted as Pods' legal counsel. Silver Point Finance, LLC arranged the financing.

Syniverse Technologies

buys wireless services

Syniverse Technologies, a Tampa technology firm for the global telecommunications industry, completed its acquisition of the wireless services business of Billing Services Group Limited. The combined company has customers in more than100 countries .

"This acquisition significantly expands Syniverse's global footprint and adds a world-class financial settlement platform to our industry-leading suite of services," Tony Holcombe, president and CEO of Syniverse, said in a press release. "The combination of Syniverse and BSG Wireless also will lead to increased operating efficiencies, and we expect to realize $12 million of annual cost synergies within two years."

The former BSG Wireless operations will become part of Syniverse's EMEA organization and will be led by Eugene Bergen Henegouwen, executive vice president of EMEA.

Syniverse's products allow communications systems to offer seamless mobile services.

Aerosonic subsidiary

finds Virginia contamination

Avionics Specialties Inc., a subsidiary of aviation technology manufacturer Aerosonic Corp., is conducting an environmental site assessment at its Earlysville plant, which is scheduled to close at the end of the month.

Results from the on-site testing detected the presence of chlorinated solvents in the soil and groundwater on the plant property and the company is conducting additional testing to define the extent of this contamination and the proper cleanup method. Aerosonic plans to sell the Earlysville property.

Avionics Specialties has contacted and is in discussion with the Virginia Department of Environmental Quality, other public agencies, local governmental and political leaders and neighbors.

The next phase of the assessment will focus on airport property adjoining the Avionics Specialties property and the wells of the closest neighbors in the Walnut Hill community, on the other side of the Airport property. No residential properties adjoins the Avionics Specialties property.

Based on the company's ongoing investigation, including interviews with long-term and former employees, and research of the company's files, these chlorinated solvents were not used by Avionics Specialties. The solvents found were likely used as degreasing agents by previous occupants of the plant during the first several decades of the plant's operations dating back to 1954. Avionics Specialties purchased the property in 1993, but as the current owner of the property, Aerosonic is responsible for the clean-up of the site.

"While we don't have the facts about any offsite impacts, our goal in reaching out to our neighbors is not to alarm anyone, but rather to assure them that we are taking the most responsive and responsible course of action in dealing with this situation," Mark Perkins, interim CEO of Avionics Specialties, said in a press release.

Avionics Specialties has hired independent experts to take water samples and an independent lab specializing in water testing will test the samples. In the event that solvents are detected in drinking water, the contaminants can be removed by a carbon filter system placed on the well system.

The Earlysville manufacturing operations have been relocated to the Clearwater location of its parent company to improve manufacturing efficiencies.

Brown & Brown acquires

Evergreen Re, Curzi Insurance

A subsidiary of Daytona Beach- and Tampa-based insurance firm Brown & Brown Inc. purchased the assets of Evergreen Re Inc. and Curzi Insurance Agency Inc.

Evergreen Re is the nation's largest health plan reinsurance broker for health plans, physician groups and other managed healthcare organizations. Evergreen's current management and staff will continue to serve clients from its Stuart headquarters and other offices around the country as a stand-alone Brown & Brown subsidiary. Brown & Brown already runs a similar reinsurance intermediary called Axiom Re.

Curzi Insurance Agency is a retail insurance agency, which serves the general commercial property and casualty insurance needs of a wide range of clients throughout Pennsylvania and surrounding states.

Progress Energy Florida

buys more Biomass output

St. Petersburg-based Progress Energy Florida has signed another contract with Biomass Gas & Electric LLC to purchase electricity from a second waste-wood biomass plant planned for Florida.

BG&E, based in Atlanta, plans to build a power plant in North or Central Florida that will use waste wood products - such as yard trimmings, tree bark and wood knots from paper mills - to create electricity. It would generate about 75 megawatts, or enough electricity to power 46,000 homes. The plant is expected to avoid the need to burn the equivalent of about 5 million tons of coal over the 20-year life of the contract. It would be identical to a BG&E waste-wood plant announced in July. Progress Energy Florida agreed to buy the output of that plant as well.

Projected commercial operation is expected to begin in June 2011, about six months after the first waste-wood plant. In total, BG&E has four biomass power plants planned for construction in the next four years.

"Clean, renewable energy sources, such as this one, play a vital role in our balanced approach to managing Florida's growing energy needs," Jeff Lyash, president and CEO of Progress Energy Florida, said in a press release. "This partnership continues our long history of supporting innovative technologies and promoting cost-effective, cleaner energy sources."

The contract will be filed for consideration with the Florida Public Service Commission for approval of the contract and certification of the proposed plant as a qualifying facility under Florida laws and regulations that encourage renewable energy. Over the past two years, Progress Energy has signed contracts to add nearly 300 megawatts of renewable energy to its system - which is enough to power 170,000 homes.

Quality Distribution

finishes Boasso America buy

Quality Distribution LLC, a subsidiary of Tampa-based Quality Distribution Inc., and its subsidiary QD Capital Corp., has consummated the acquisition of Boasso America Corp. with a private placement offering of $50 million of Senior Floating Rate Notes due 2012, Series B and a new senior secured asset-based loan. It also announced that it has repaid all outstanding indebtedness under its previously existing credit facility.

"Completing the financing enabled us to close the Boasso acquisition as anticipated. Boasso, which has grown its revenues at a double-digit pace the last several years, positions us to serve global growth markets and provide an increased service offering to our customers," Gary Enzor, CEO, said in a press release.

"Those offerings include rail transloading, trucking, cleaning and depot services (maintenance, repair and storage) to facilitate international container shipments," Enzor said.

The company acquired all of the outstanding capital stock of Boasso for about $58.9 million.

QRS Music Technologies

plans 'The Manhattan' piano

Naples-based QRS Music Technologies Inc., which designs, manufactures and distributes pianos, piano-based audio and multimedia products, music and piano accessories, has introduced The Manhattan, a piano designed to appeal to city dwellers.

The minimalist Manhattan piano, in the Story & Clark line, is ebony with Birdseye maple accents and will be introduced as a 4'11" baby grand. The new Signature Series Collection features styles, scale designs and specifications determined exclusively by and for QRS.

"QRS is firmly established as a technology leader and innovator; our next goal is to begin positioning Story & Clark as a leading style authority in the piano market," Tom Dolan, president and CEO, said in press release.

"This may sound like an odd concept to some dealers, but innovative designs and fashions are what continue to breathe new life and sales into many industries from cars and computers to furniture and home improvement; style is an important factor," he said. "Price is a key consideration. There are some beautiful and unusual pianos out there but they are all over $60,000. This is not where the bulk of the sales in this industry are. Our pianos are all under $20,000 and are designed to compliment today's lifestyles and home decor."

QRS Music Technologies' Signature Series Collection will be unveiled at the National Association of Music Merchants show in January.