Triad Business Notes

[zalo]

Per the TBJ: A top Wells Fargo analyst said Thursday a potential deal that would combine Winston-Salem-based Reynolds American Inc. and Greensboro-based Lorillard Inc. is imminent and upped the likelihood of a deal to 90 percent from 80 percent earlier this month. Bonnie Herzog, senior analyst and managing director of beverage, tobacco and convenience store research at Wells Fargo Securities, says in a new analysis that she bases her views on news reports Thursday that indicate Reynolds (NYSE: RAI) is in “active discussions” to buy Lorillard (NYSE: LO).

“We are reiterating our prior conviction that an RAI-LO combination remains highly likely - dare we say 90 percent probability?” she said in the analysis. “Given the current market environment where both targets and acquirers are being rewarded, we continue to believe this will be a value creating transaction for both RAI and LO shareholders.” She also said that British American Tobacco, Reynolds' largest shareholder, could acquire or form a strategic partnership with the combined entity.

"We believe BAT will contribute capital to help finance the deal and maintain its existing 42 percent stake in RAI in the combined entity," she said. She also said that the return of Susan Cameron as CEO is "a positive catalyst for the stock as she leads the company into its next generation of growth."

[cityboi]

I think its up in the air what may really happen. There is talk of British American buying out Reynolds American as well. There is a chance the Triad could loses both its big tobacco companies.

 

http://www.bizjournals.com/triad/blog/2014/05/report-british-american-looking-at-u-s-buys.html

Edited June 3, 2014 by cityboi

[zalo]

I will raise your May 12 TBJ article with my May 29 TBJ article. I think this will happen first.

http://www.bizjournals.com/triad/blog/2014/05/lorillard-ceos-comments-lead-analyst-to-believe.html

Then BAT comes into the picture. Everyone in Winston knows the 10 year deal. By the time it shakes out, the North American division of BAT will be based in the "Triad". (Throwing you a bone, boi. Don't drop it)

Edited June 3, 2014 by zalo

[toast002]

Stone Brewery has selected Greensboro as a finalist to locate its east coast brewery and distribution hub.  Stone Brewery would also have a full service restaurant, gift shop, and gardens.  A final decision will be made in July.

 

http://www.bizjournals.com/triad/news/2014/06/06/Greensboro-ison-short-list-for-20m-stone-brewing.html

Edited June 7, 2014 by toast002

[zalo]

Something more to chew on from this morning's TBJ:

 

 

It feels like we're watching a slow-moving soap opera. But in the latest installment of "Will they, won't they" of a merger of Reynolds American Inc. and Lorillard Inc. some developments in Spain are adding fuel to the fire that the two Triad companies will come together. Bloomberg reports that Imperial Tobacco Group plans to sell 30 percent of its stock in its Madrid unit, Compania de Distribucion Integral Logista Holdings SA, next month. Doing so would to raise about $800 million.

Why is that important to note? Because it would put England-based Imperial in a better position to snap up assets that regulators would likely force Reynolds (NYSE: RAI) and Lorillard (NYSE: LO) to offload in order for a deal to go through. Imperial is also in a better position that most of its peer companies to buy any brands should that happen. “The Logista IPO may help set the Reynolds-Lorillard deal in motion again,” Philip Gorham, an analyst with Morningstar Inc. told Bloomberg. “It gives Imperial a bit of leeway to help finance the brand acquisitions ‘and give its U.S. business scale."

Analysts have speculated that Reynolds would probably have to at least sell its Kool, Winston and Salem brands to gain regulatory approval. Winston-based Reynolds and Greensboro-based Lorillard have both repeatedly declined to comment on a potential merger. But speculation by analysts and news outlets has been constant during the last several months. A potential merger would likely mean local job cuts and consolidation of existing operations. But a marriage between the pair also could ultimately create a more powerful player in the tobacco industry and a stronger company based in the Triad.

[zalo]

Well, here's the status at week's end after week of speculation on all sorts of scenarios.

http://www.journalnow.com/business/business_beat/reynolds-confirms-interest-in-lorillard/article_e2c48616-08f0-11e4-b4c9-001a4bcf6878.html

[zalo]

This is shaping up to be most likely the best scenario for the Triad. The GSO factory remains operational and one would think with the head guy based in GSO along with the Reidsville operations would prompt Imperial Tobacco to move their HQ from Bowling Green, KY to GSO.



http://www.journalnow.com/business/business_beat/reynolds-american-launches-billion-bid-for-lorillard/article_dcb7e1f8-0c17-11e4-9d28-001a4bcf6878.html

Edited July 15, 2014 by zalo

[zalo]

Hated seeing this story out  of the TBJ:

 

Merz North America — part of the global pharmaceutical company Merz Pharma Group — is moving its headquarters from High Point to Raleigh. The announcement was made at a press conference Wednesday afternoon in downtown Raleigh where Gov. Pat McCrory was on hand to announce more details. The new headquarters is expected to house 250 employees, including 50 new jobs. It will move operations from the current headquarters 4215 Tudor Lane in High Point as well as other U.S. sites to Raleigh. Merz is currently leasing 60,000 square feet of space at 6501 Six Forks Road in Raleigh.

While the company considered several metro areas in three states — including an expansion in the Greensboro area — Raleigh won, even though no incentives were issued. "The incentives weren't as important to us as the fit — the fit was perfect for us," says Michael McMyne, senior director of Commercial Excellence and North American Strategic Implementation at Merz. In the end, it was the Triangle talent force, fueled by the three major universities. "Forty percent of life science industry companies in some way, shape or form call Raleigh home," CEO Bill Humphries says. "You have the best and brightest minds."

[Urbanity]

Shame that the Greensboro MSA lost a pharmaceutical company (when they need these kind of jobs) to another city in the state but am glad they are staying in NC. 

[DanRNC]

Well they can fill positions with insanely qualified people in a split second in the Triangle area, which is not possible in other areas of NC. 

[DanRNC]

Also, along the same lines, I have heard that Syngenta will relocate their regulatory group from Greensboro to RTP where there is a large expansion going on with plans to consolidate all NC ops there.

[cityboi]

This is shaping up to be most likely the best scenario for the Triad. The GSO factory remains operational and one would think with the head guy based in GSO along with the Reidsville operations would prompt Imperial Tobacco to move their HQ from Bowling Green, KY to GSO.

http://www.journalnow.com/business/business_beat/reynolds-american-launches-billion-bid-for-lorillard/article_dcb7e1f8-0c17-11e4-9d28-001a4bcf6878.html

 

Its going to be weird seeing a brand (Newport) associated with Greensboro being produced in Forsyth County and Kool, Winston and Salem cigarettes being produced at the Greensboro Lorillard (Imperial Tobacco) plant. Greensboro did lose a headquarters and a brand but it could have been much worse. At least the plant isn't shutting down as some speculated and cigarette production there will go on. But even still there could be some layoffs because without Newport, Lorillard would have been gone decades ago. Its the top selling menthol cigarette in the country. Who knows maybe Imperial Tobacco will one day relocate its headquarters to Greensboro. It wont be as big as Lorillard was but it would at least replace a headquarters loss. Lorillard wasn't always based in Greensboro. While the company had a plant in Greensboro since the 50s , Lorillard was based in New York City. It wasn't until the late 1990s, Lorillard decided to relocate its headquarters to Greensboro. It would have been nice if Lorillard had a brand named after Greensboro but im sure the company would had been sued by Phillip Morris because of the name similarity with Marlboro.

 

Most people dont realize that the old big brick warehouse across the street from Lorillard in Greensboro use to be an RJ Reynolds plant many years ago.

Edited July 18, 2014 by cityboi

[zalo]

What is it about Florida juries? First Casey Anthony & George Zimmerman, now this. I think it's time for the Federal Government to step in and take over and have juries imported from various other states of the Union to decide trials in the Sunshine State. As it is obvious that the competency of the average Floridian falls below the threshold of being capable of handling jury duty.



http://www.wxii12.com/news/fla-jury-slams-rj-reynolds-with-236b-in-damages/27040954?absolute=true#!biJwFO

[zalo]

Looks like the decision has been made. Stone Brewing is Richmond bound. They won out over Norfolk & Columbus OH.

http://www.timesdispatch.com/business/manufacturing/sources-stone-brewing-coming-to-richmond/article_e44149f2-dacb-5d44-9e06-3d8e818fa183.html

Edited October 9, 2014 by zalo

[cityboi]

Imperial Tobacco chooses Greensboro for headquarters of new company.

 

 

In a complex deal, Winston-Salem based Reynolds American acquired Greensboro based Lorillard Tobacco Company. Lorillard's flagship brand Newport was the reason for the deal. Its the top selling menthol cigarette in the United States. Under the deal, Newport production would be moved to RJR's Tobaccoville plant in Forsyth County. However RJR had to sell off its WInston and Salem brands so they wouldn't have a monopoly in the cigarette market. Imperial Tobacco would buy the WInston and Salem brands along with Lorillard's other brands and the Lorillard plant in Greensboro and move production of Winston and Salem to Greensboro.

 

Imperial Tobacco announced that it will also move its corporate headquarters to Greensboro. The company will have two plants in the area. The Lorillard plant and the Imperial plant in Reidsville. In addition to the move, Imperial Tobacco will take on a new name and will be the third largest tobacco company in the United States, the same rank Lorillard had before the merger. Imperial has operations in Europe, Ft Lauderdale and Tampa Florida. The company also makes cigar brands such as Dutch Masters, Phillies and Backwoods. Salem, Winston and Kool will be the largest selling cigarette brands in the new company. This really did turn out to be a win-win deal.

 

 

 

 

http://www.bizjournals.com/triad/blog/2014/10/imperial-tobacco-picks-greensboro-for-headquarters.html

Edited October 23, 2014 by cityboi

[RichardC]

Thanks for the news flash, but this is about three months old.  All this information was either announced or expected to pan at a news conference held back in July.

 

http://www.scpr.org/news/2014/07/15/45348/tobacco-giant-reynolds-american-to-buy-lorillard-i/

 

You can thank Susan Cameron for saving the jobs in Greensboro.

[cityboi]

Imperial buying the Lorillard property is old news but not bringing a new headquarters to Greensboro. That was just announced today. It may have been speculated a few months ago but its just now being confirmed.

[zalo]

I think I shall change my moniker from zalo to Nostrodamus

 

 

Posted 15 July 2014 - 10:28 AM

This is shaping up to be most likely the best scenario for the Triad. The GSO factory remains operational and one would think with the head guy based in GSO along with the Reidsville operations would prompt Imperial Tobacco to move their HQ from Bowling Green, KY to GSO.

http://www.journalno...1a4bcf6878.html

Edited by zalo, 15 July 2014 - 10:29 AM.

[RichardC]

 That was just announced today. It may have been speculated a few months ago but its just now being confirmed.

 

 

Some of us read more than the Triad Business Journal, and have other sources, and know people personally.  And it's not "bringing a new headquarters" to Greensboro, as much as it is retaining workers who are already there.  Greensboro, thanks to the hands of RJR, is just not losing anything it already has.  The name changing and brand swapping has a lot of people a little confused.

[zalo]

Some of us read more than the Triad Business Journal, and have other sources, and know people personally.  And it's not "bringing a new headquarters" to Greensboro, as much as it is retaining workers who are already there.  Greensboro, thanks to the hands of RJR, is just not losing anything it already has.  The name changing and brand swapping has a lot of people a little confused.

Maybe this will cut down on Mayor Nancy Vaughn & Councilman Zach Matheny's whining.

[cityboi]

Something tells me the confusion may not be over. In the midst of all this, British American Tobacco bought 50% of Reynolds American's stocks so there is the potential of Reynolds American being bought out at some point in the future. The fact is, communities take pride in having corporate entities but they forget that can be taken away. Greensboro has been fortunate in its "losses" In the case of Lorillard, it really was a win-win. The only things that will be changing is new ownership, name and different brands. When Greensboro loss Jefferson-Pilot to Lincoln Financial, It could have been devastating with massive job cuts. Instead,  Philadelphia based Lincoln Financial made Greensboro the headquarters for its insurance operations. It could have been very easy for them to move those jobs to Philadelphia. No community is immune from losing a headquarters, banks are particularly vulnerable. BB&T could one day be bought out and leave Winston-Salem like Wachovia. Bank of America could leave Charlotte one day for a city like New York. Who knows what could happen over the next decade or so. Things can change pretty fast in business.

Edited October 25, 2014 by cityboi

[zalo]

I will give to you Boi, you have a strong grasp of the obvious.

[zalo]

Per the TBJ. This is a major expansion for the bank.

 

BB&T Corp. has agreed to acquire Susquehanna in a $2.5 billion cash and stock transaction.

Headquartered in Lititz, Pa., Susquehanna is a top 50 bank in the United States with $18.6 billion in assets, $13.6 billion in deposits and 245 banking offices in Pennsylvania, Maryland, New Jersey and West Virginia. The acquisition will significantly increase the footprint of Winston-Salem-based BB&T (NYSE: BBT) in the Mid-Atlantic region. The deal is still subject to regulatory approval. BB&T plans to establish three new banking regions encompassing certain markets in Pennsylvania and New Jersey. BB&T also plans to integrate its Baltimore region with Susquehanna's. These four regions are expected to be led by Susquehanna executives.

Susquehanna Chairman and CEO William J. Reuter and Director Christine Sears will join BB&T's board of directors when the deal closes. "We look forward to being a part of BB&T's storied franchise," Reuter said. "BB&T's expanded product offerings and resources combined with a stronger balance sheet will enable us to better serve our clients, associates and communities."
Under the terms of the agreement, Susquehanna shareholders will receive $4.05 in cash for each share of Susquehanna common stock. The merger consideration is valued at $13.50 per share based on the average closing price of BB&T over the 45 trading days ending on November 10, 2014.

"We are extremely excited to welcome our new clients and associates in these attractive markets to BB&T. Susquehanna's culture, commitment to its communities and business model are a strong fit with BB&T," said BB&T Chairman and Chief Executive Officer Kelly S. King in a statement.

[RichardC]

Wonder if this will refuel interest or speculation of a new tallest for Winston-Salem and the "Triad."

[zalo]

Somehow I seem to doubt it.