Corporate Report: Dec. 30

Brown & Brown buying Calif. firm for $395 million
Daytona Beach- and Tampa-based Brown & Brown Inc. has entered into an agreement to acquire the parent company of Arrowhead General Insurance Agency Inc. from Spectrum Equity Investors, JMI Equity and a management equity holder group. The $395-million purchase is expected to close sometime this month.

The purchase price is $395 million, subject to adjustments for Arrowhead's working capital, debt and net tax operating losses. An additional payment of up to $5 million may be made three years after the closing, depending on Arrowhead's earnings.

Arrowhead is a national insurance program manager and one of the largest managing general agents in the property and casualty insurance industry. Arrowhead, its subsidiary American Claims Management Inc. — a third-party claims administrator — and other subsidiaries, are expected to have 2011 net revenues of $105 million.

“The addition of Arrowhead to our programs division should significantly expand the breadth and depth of our insurance carrier relationships and the products and services we can offer our distribution partners,” J. Powell Brown, CEO and president of Brown & Brown, says in a press release. “It is expected that this transaction will increase our total annual revenues and number of team members by approximately 10%.”

Brown & Brown Inc. offers insurance and reinsurance products and services, as well as risk management, third-party administration, managed health care and Medicare set-aside services and programs.

TBBS International buys lighting company
New Port Richey-based TBSS International Inc. has signed a letter of intent to acquire Velella International Lighting Inc. Velella owns a proprietary energy-efficient lighting system for the residential and commercial lighting industry.

TBSS expects to close on the purchase before the end of the year.

“In the past, whether it is LED lighting, compact fluorescent lighting or daylight harvesting ballasts, there have always been significant drawbacks,” John Velella, president and CEO of Velella, says in a press release. “Competitive technologies have either had too high an initial cost, high operating costs, and/or disposal challenges. Velella's lighting system addresses not one, but all of these concerns.”

Velella has a research and warehouse facility in Fort Lauderdale and a warehouse and a research and development facility in St. Thomas, The Virgin Islands. The company says it has backlog of $3.2 million of strip and dock piling lights.

TBSS International provides services to the gold mining, oil drilling, water well drilling, trenching and construction industries.

Infrax Systems spinning off Lockwood Technology Corp.
The board of directors of St. Petersburg-based Infrax Systems Inc. has approved a dividend of 70% of its holdings in the stock of Lockwood Technology Corp. to spin off that company to Infrax's existing shareholders. Infrax Systems officials expect Lockwood Technology to trade under its own symbol on the NASDAQ over-the-counter bulletin board.

“Enabling Lockwood Technology to expand their core business and recruit an outstanding management team will provide for greater liquidity, future acquisitions, and greater access to public or private capital,” says Paul Aiello, CEO of Infrax, in a press release.

Florida, Lee awarding money to Chico's HeadQuarters expansion
Lee County and the state of Florida have approved financial incentives totaling $3.26 million for Chico's FAS Inc. to support the expansion of its corporate headquarters in Fort Myers.

The project is projected to result in 150 new jobs and salaries of $11.3 million over the next three years.

As part of the agreement, the state also awarded Chico's incentives from the Qualified Target Industry Fund, which could result in $1.05 million in tax rebates over the next three years.

Chico's will receive $2 million from the Quick Action Closing Fund from the state of Florida an amount matched by Lee County.

“Chico's decision to expand in Florida validates the state's success in maintaining a business climate that enables the growth of headquarters operations,” Gray Swoope, president and CEO of Enterprise Florida Inc., says in a press release. “This sector is one of our prime targets for economic development, so, this announcement certainly is great news for Florida.”

Chico's employs 1,250 at its corporate headquarters, located at 11215 Metro Parkway, Fort Myers.