Monthly Archives: January 2014

Loudon boatmaker Malibu Boats sets IPO price

malibu boats

Malibu Boats, the Loudon, Tenn.-based maker of watersports towboats, is the latest area company to go public.
The boat maker has set its IPO price at $14 per share and is scheduled to start trading today on the Nasdaq market under the symbol MBUU.
The company is looking to raise more than $100 million.
With the economy gaining strength and consumer confidence improving, Malibu’s timing looks good.
After toughing out the Great Recession, Malibu has seen its earnings rise in recent years as it has rolled out a number of new products. Malibu’s wakeboarding Surf Gate technology received its second patent last September.
Raymond James and Wells Fargo Securities are acting as joint book-running managers for the offering. SunTrust Robinson Humphrey and BMO Capital Markets are acting as co-managers.
Click here for  more on Malibu from Seeking Alpha.
Click here for a Wall Street Journal Marketwatch report on Malibu.

FTC approves Community Health-HMA merger

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Community Health Systems acquisition of Health Management Associates moved a step closer Wednesday with an agreement with the Federal Trade Commission.
Under terms of the agreement, Community Health will divest itself of two hospitals owned by HMA —  Riverview Regional Medical Center in Gadsden, Alabama, and Carolina Pines Regional Medical Center in Hartsville, S.C.
Franklin, Tenn.-based Community Health said the divestitures would not have a “meaningful impact on the combined company’s financial operations or cost-savings.”
HMA, based in Naples, Fla., owns Tennova Healthcare, which operates six hospitals in the Knoxville region.
Community Health has agreed to buy HMA for $3.9 billion in cash and stock. The sale is expected to close at the end of January.
Click here for Community Health’s news release.

Regal’s Amy Miles named to Norfolk Southern board

Amy Miles, CEO of Regal Entertainment Group

Amy Miles, CEO of Regal Entertainment Group

Knoxville businesswoman Amy Miles, CEO of movie theater operator Regal Entertainment Group, is taking her business acumen to Norfolk Southern railroad.
Miles was one of two directors elected to the Norfolk Southern Corp. board effective Tuesday, the railroad  announced.
Miles, who has been CEO of Knoxville-based Regal since 2009, was appointed to the Norfolk Southern board’s audit and finance committees.
Like many executives, Miles serves on a number of corporate and nonprofit boards, including National CineMedia Inc., a digital in-theater media network, co-owned by Regal; the Regal Foundation, and Variety of Eastern Tennessee, a children’s charity.
She also is an executive board member of the National Association of Theater Owners.
Also elected to the Norfolk Southern board was James A. Squires, who was appointed president of Norfolk Southern last year.
Miles could not immediately be reached for comment on the railroad appointment.
Naming a movie theater executive to a railroad board may seem a stretch, but Norfolk Southern has a major presence in Knoxville.
Last year it opened a $5.9 million rail/truck transfer terminal on Tennessee Avenue giving companies that lack direct rail connections a way to access rail.
Knoxville also sits along the Crescent Corridor, Norfolk Southern’s 2,500-mile intermodal network that stretches from Louisiana to New York.
Regal is the largest movie theater operator in the country with 580 theaters in 42 states, the District of Columbia and Guam, Saipan, American Samoa.

Eastman Chemical sued over W.Va. chemical spill

Work continues around a storage tank with the chemical designation MCHM, 4-methylcyclohexane methanol, the chemical that leaked into the Elk River, at Freedom Industries storage facility in Charleston, W.Va., Monday, Jan. 13, 2014.

Work continues around a storage tank with the chemical designation MCHM, 4-methylcyclohexane methanol, the chemical that leaked into the Elk River, at Freedom Industries storage facility in Charleston, W.Va., Monday, Jan. 13, 2014.

Legal fallout from the accidental chemical spill that affected the water supply for 300,000 West Virginians has landed at the doorstep of Kingsport, Tenn.-based Eastman Chemical.
Eastman, a specialty chemicals manufacturer, is among the defendants named in a suit filed Monday in U.S. District Court in Charleston, W. Va., according to published reports.
The publicly traded company makes 4-methylcyclohexane methanol, or MCHM, the chemical that leaked into the Elk River in Charleston, W.Va., last week. MCHM is used in coal processing
The spill came from a storage tank at a Freedom Industries, which is also a defendant in the lawsuit.
Eastman has not commented on the lawsuit, according to the Wall Street Journal.
So far the company’s stock price has not suffered. Shares were 69 cents higher at $79.98 in early afternoon trading today.
Click here for a Bloomberg report on the legal fallout from the spill.
Click here for a Wall Street Journal report.

Nominations open for annual Pinnacle Business Awards

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Nominations for the Knoxville Chamber’s 10th annual Pinnacle Business Awards are now open.
The nominations will be accepted through 5 p.m. Feb. 28. The awards recognize the achievements of top businesses and entrepreneurs in the Knoxville area.
You do not have to be a Chamber member to nominate a company for an award.
Award categories are: Young Entrepreneur, Small Business Excellence, Minority-Owned Business Excellence, Woman-Owned Business Excellence, Business Excellence, Innovator and Impact .
The awards will be presented May 2 at the Pinnacle Awards Gala, which will be held at the Knoxville Convention Center.
The highlight of the event is typically presentation of the James A. Haslam II Leadership Award, which is given to a business leader who “exhibits strength in character, resolve and a commitment to the community and exemplary success in the regional business community,” according to the Chamber website.
Click here for more information about the awards.
Click here for an online nomination form.