JUNE 2008: DEAL WATCH
Troubled
TRM gets loan, buys company
IN LATE APRIL Portland-based ATM network operator TRM Corp.
created one of the largest nonbank ATM networks in the nation
when it purchased New Jersey-based LJR Consulting, which does
business as Access To Money, for $15 million. Part of the
funding for the deal came from an $11 million loan that TRM
raised the same month, which the company is also using to pay
down its debts. But for financially troubled TRM, growth is
perhaps a curious choice, says ATM Magazine editor Tracy
Kitten.
April also brought plenty of bad news. TRM’s auditor,
accounting firm McGladrey & Pullen, issued a warning
concerning TRM’s ability to stay in business.
(TRM’s previous independent auditor,
PricewaterhouseCoopers, raised the same concern in 2007 and
declined to stand for reappointment.) The company’s stock
was delisted from Nasdaq for not meeting the minimum price
requirement. And TRM announced revenue had dropped 16% and it
had lost $8.43 million in 2007 — its third year in the
red.
The company, which is on its third CEO in as many years,
jettisoned its foreign and domestic photocopier business and
other side businesses last year in an attempt to regain the
black. Selling its subsidiaries allowed the company to cut its
workforce from about 400 workers to 40.
The purchase of Access To Money moves the company in the
opposite direction, increasing the size of its ATM network to
12,200 machines, most of which are in convenience-store chains.
Kitten says she would have expected to see the company continue
to tighten.
TRM, however, may be making a smart move. Increasing gas prices
— which raise operating costs — and economic
pressures — such as costly but required upgrades —
are making things difficult for smaller ATM network operators.
“In order to absorb some of those losses, in order to
survive, maybe you need some cushion and some size,”
Kitten
says.
ABRAHAM HYATT
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MERGERS AND ACQUISITIONS
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|
PRICE (TERMS)
|
EXP. CLOSE
|
BUYER / PARENT (HQ)
|
SELLER (HQ) / PARENT
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ANNOUNCED
|
|
$15M (cash, stock, debt)
|
Q2 ‘08
|
TRM (Portland)
|
LJR Consulting (NJ)
|
4/29
|
|
ND (cash)
|
Q2 ‘08
|
Hanover Partners (Lake Oswego)
|
Pyramid Technologies (AZ)
|
4/17
|
|
ND
|
Q2 ‘08
|
Market Decisions (Portland)
|
call center (NM)/ Research Data Design
|
4/18
|
|
ND
|
Q2 ‘08
|
Smarsh (Portland)
|
CentraScan (CT)
|
4/18
|
|
ND
|
Q2 ‘08
|
Smarsh (Portland)
|
Financial Visions (CA)
|
4/22
|
|
ND
|
Q2 ‘08
|
Strands (Corvallis)
|
Expensr (CA)
|
4/22
|
|
|
REAL ESTATE TRANSACTIONS
|
|
PRICE
|
BUYER / PARENT (HQ)
|
REAL ESTATE (LOCATION) / SELLER (HQ)
|
ANNOUNCED
|
|
$45M
|
The Matteson Cos.
|
Harrison Tower Apartments (Portland)/ Bean Investment
Real Estate; Williams & Dame Development
|
4/16
|
|
$20M
|
Carlyle Investment Company
|
research facilities (Hillsboro)/ Credence Systems
|
4/16
|
|
$4.5M
|
Stephen Moses Interests
|
Vick Building (Salem)/ Vernon Hill Associates II
|
4/28
|
|
$3.17M
|
Bannon Land 1
|
The Evergreen Park Apartments (Portland)/ JC Equities
VI
|
4/23
|
|
$2.45M
|
YKHW
|
Cedars in the Woodland hotel (WA)/ Sandhu NW
Hospitality
|
4/24
|
|
$2.10M
|
Knez Realty Group
|
Samrose Salmon Center (Portland)/ Samrose Salmon
Center
|
4/23
|
|
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CAPITAL RAISING
|
|
PRICE (TERMS)
|
COMPANY (HQ) / LEADERSHIP
|
INVESTOR (HQ)
|
ANNOUNCED
|
|
$74M (debt)
|
ScanlanKemperBard Companies (Portland)/ Robert D.
Scanlan, chairman & CEO
|
Bank of America
|
4/17
|
|
$60M (state grant)
|
Vaccine & Gene Therapy Institute (FL)/OHSU
(Portland)/ Dr. Jay Nelson, director
|
Innovation Incentive Fund (FL)
|
4/28
|
|
$47M (bond)
|
Reed College (Portland)/ Colin Diver, president
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public offering
|
4/22
|
|
$25M (donated office space)
|
OSU (Corvallis)/ Dr. Edward Ray, president
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Hewlett Packard (Corvallis)
|
4/23
|
|
$11M (credit facility)
|
TRM (Portland)/ Richard Stern, president & CEO
|
LC Capital Master Fund Ltd (NY)
|
4/18
|
|
$5.64M (bond)
|
Mt Hood Community College (Gresham)/ Dr. John J.
Sygielski, president
|
public offering
|
4/23
|
|
$3.5M (bond)
|
Linn-Benton Community College (Albany)/ Rita Cavin,
president
|
public offering
|
4/8
|
|
$328K (state grant)
|
Enterprise for Employment and Education (Salem)/
Agnes Balassa, exec. director
|
Employer Workforce Training Fund (Portland)
|
4/30
|
|
$303K (state grant)
|
Clackamas Community College (Oregon City)/ Joanne
Truesdell, president
|
Employer Workforce Training Fund (Portland)
|
4/30
|
|
$275K (state grant)
|
Lane Workforce Partnership (Eugene)/ Chuck Forster,
exec. director
|
Employer Workforce Training Fund (Portland)
|
4/30
|
|
$128K (state grant)
|
Southwestern Oregon Community College (Coos Bay)/ Dr.
Judith M.L. Hansen, president
|
Employer Workforce Training Fund (Portland)
|
4/30
|
|
$128K (state grant)
|
SCOEDE (Klamath Falls)/ Betty Riley, executive
director
|
Employer Workforce Training Fund (Portland)
|
4/30
|
|
$128K (state grant)
|
Rogue Valley Workforce Development Council (Medford)/
Ron Fox, executive director
|
Employer Workforce Training Fund (Portland)
|
4/30
|
|
$32K (state grant)
|
SOPHEC (Medford)/ David Matthews, executive director
|
Employer Workforce Training Fund (Portland)
|
4/30
|
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List researched by Mark
Druskoff
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