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FAST LANE - February
2005
Lt. Gov. Steve Pence will serve as the KSA chairman. Other members of the KSA will be Secretary Jim Host of the Commerce Cabinet, Secretary LaJuana S. Wilcher of the Environmental and Public Protection Cabinet, Wayne Martin, Charlie Martin, Myra Blackwelder, Dr. George Ginter, Kathy DeBoer, Louis Stout, Joseph Terry, Jerry Carroll, Larry Bisig, Donna Smith, and Wade Houston. One position remains to be filled. Fletcher himself has already announced his involvement to help attract the 2010 World Equine Championships to the Kentucky Horse Park. In addition, Fletcher announced that a five-member Kentucky Boxing and Wrestling Authority (KBWA) has been established to replace the former Kentucky Athletics Commission. The new group will have “a more focused vision on establishing a regulatory environment necessary to attract world-class professional boxing and wrestling events to Kentucky” and to protect the athletes, Fletcher said. “Kentucky has a proud boxing heritage and four native sons – Muhammad Ali, Jimmy Ellis, Greg Page, and Marvin Hart – who were world boxing heavyweight champions, and it is time we took advantage of that heritage and promote the commonwealth as the venue for top boxing events,” Fletcher noted. The KBWA replaces the previous, seven-member athletic commission and is to be part of the Environmental and Public Protection Cabinet (EPPC). Members of the Boxing and Wrestling Authority include EPPC Secretary LaJuana Wilcher; Dr. George Ginter, Joe Carr, Bud Schardein, and Tom Baxter. LOUISVILLE Aptamera, Inc., a Louisville oncology drug development company, has signed an agreement to be acquired by Antisoma plc in a deal valued at approximately $21.4 million. Antisoma is a biotechnology firm headquartered in the United Kingdom. Both companies specialize in the development of anti-cancer drugs. “It is gratifying to see that technology coming out of labs of University researchers and largely funded by local investors is being recognized for its commercial promise by a world-class biotech firm,” noted University of Louisville President Dr. James Ramsey. “This success marks a significant milestone in our community’s quest to become known as a place where top-notch research and entrepreneurship combine to create compelling answers to tough problems like cancer.” Antisoma will become a license and development partner to the University of Louisville with respect to certain aspects of Aptamera’s technology, and will sub-license certain diagnostic applications of the technology to a new spin-off company which will be owned by Aptamera’s current shareholders. Antisoma plans to maintain Aptamera’s facility in Louisville and will sub-let a portion of the space to the new spin-off company. FLORENCE
Citing geographic advantages and the proximity of an international airport, ZF Group opened its corporate offices in Florence in 1997, but recent efforts to consolidate North American operations led to the decision to relocate. The company recently built a new research center in Detroit and the company’s new president, Julio Caspari, is based in the Detroit area as well. The move to Detroit will affect approximately 60 jobs. Of those, 30 jobs – primarily finance, human resources and marketing positions – will move to Northville, Michigan while about 30 information technology positions will move to Cincinnati. Employees and operations at the company’s three manufacturing facilities in the region – which employ a total of approximately 1,000 people – will not be affected. LEXINGTON
The new facility also includes a 5,200-sq.-ft. area dedicated for support and training for CLARK dealers. The new facility represents an estimated investment of $6.3 million. Company officials anticipate that CLARK’s Lexington employment will increase by more than 50 percent within the next several years, particularly in the areas of research, development, engineering and logistics. The company’s aftermarket parts distribution facility Louisville is not expected to be affected by the Lexington expansion. CLARK currently employs approximately 150 people in Kentucky and nearly 600 worldwide. An industry leader since it invented the first material handling truck in 1917, CLARK supplies a full line of electric and internal combustion forklifts, narrow aisle forklifts, electric pallet jacks, stackers, and electric tuggers, as well as order pickers and pallet jacks. GLASGOW Automotive supplier Johnson Controls has informed employees that the Glasgow manufacturing facility will close by the end of this summer. The Glasgow facility employs 297 people and produces sun visors, cargo load floors and overhead consoles. Those operations will be consolidated into other Johnson plants in the U.S. and Mexico. Company officials cited an “extremely competitive industry” and a need to reduce costs as determining factors in their decision. The Wisconsin-based company is a global market leader in automotive systems and facility management and control. LEXINGTON The Lexington Professional Baseball Club has sold the Lexington Legends minor league baseball franchise to Fun Entertainment, LLC for an undisclosed amount. The Tennessee-based company has also purchased Applebee’s Park, home to the Lexington Legends, from Grand Slam Properties. “Being affiliated with Bill Shea (majority owner of Fun Entertainment) and Fun Entertainment will afford us the opportunity to do everything at a higher level,” Stein said. The new owners plan to invest some $75,000 in capital improvements to the park, Stein added. “It’s always been my vision to have Applebee’s Park be an entertainment destination 365 days a year and by owning the park we now have the flexibility to bring more concerts and special events to Applebee’s Park,” Stein said. “The first thing fans will see right away is two UK/SEC baseball series’ being held at Applebee’s Park this spring.” LEXINGTON Paul Curlander, chairman and chief executive officer of Lexmark, Inc., has been named to Institutional Investor magazine’s list of America’s Best CEOs for the second year in a row. The listing identifies the nation’s top chief executive officers in 62 industries. Joining Lexmark’s Curlander were other business leaders like Jeffrey Immelt of General Electric and H. Lee Scott Jr. of Wal-Mart. Curlander has been chairman and CEO of Lexmark since April 1999. Prior to joining Lexmark’s management team, he spent 17 years with IBM in various product development and management positions. Curlander holds a bachelor’s degree in electrical engineering from the University of Colorado and a master's degree and doctorate in electrical engineering from the Massachusetts Institute of Technology. STATE The Kentucky Department for Workforce Investment has received a federal grant of more than $2.3 million to help provide health insurance coverage to Kentucky workers who have lost their jobs due to foreign trade competition. The new health care assistance program will pay 65 percent of the cost of qualified health insurance coverage for up to three months. The program is designed to help bridge the gap until individuals can complete registration for the primary health care assistance that is administered by the Internal Revenue Service. Kentucky is one of 14 states that received the U.S. Department of Labor grant to provide the health coverage assistance. “Without this program. Some workers would lose their health insurance and their eligibility to claim the IRS tax credit. This could be devastating for individuals with pre-existing conditions,” said Workforce Investment Commissioner Laura E. Owens. Kentucky’s qualified state-based coverage option is a group health insurance policy that guarantees enrollment for eligible individuals and does not impose restrictions for pre-existing conditions. The individual must have been covered by prior insurance for at least three months and have no more than a 63-day break in coverage. If the individual does not meet the guaranteed enrollment requirements, they may still be eligible for coverage but with a specified waiting period for coverage of pre-existing conditions. “There is a great deal of stress and uncertainty when someone loses a job or is living on a fixed income and this option from Anthem will help provide some peace of mind during a difficult time. This is another example of the positive results that can come when state agencies, the federal government and Kentucky businesses all work together. We encourage those Kentuckians who are eligible for these benefits to take full advantage of this option and hope other insurance companies will offer qualified plans in the future,” said Martin Koetters, executive director of the Kentucky Office of Insurance. Kentucky’s gap filler and the IRS tax credit can be used to pay for other types of automatically qualified insurance including coverage under a COBRA continuation provision, a spouse’s employer-sponsored plan, an individual’s health insurance plan and state continuation coverage. The registration form for both the Kentucky gap filler assistance and the IRS tax credit is available at the OET local offices. The OET local offices are listed on the Internet at http://oet.kky.gov/index.asp or call (502) 564-7456 for more information. Learn more about OET, an agency of the Department for Workforce Investment in the Education Cabinet at www.workforce.ky.gov. LOUISVILLE
Keller provides solid wood bedroom, dining room and occasional furniture to furniture retailers throughout the United States and Canada. “The decision has been made not to sell the legal entity but to sell only the furniture operations and assets,” said David Richardson, Keller’s chief operating officer. “This includes… our customer list, 10 product groups, marketing materials, product inventory, Web site, High Point showroom, and the ‘Keller Furniture’ name.” Company officials have been working over the past two years to make adjustments to resolve some of the company’s financial concerns, taking the once-public company private and moving headquarters from Indiana to Louisville. The company recently sold its manufacturing plant in New Salisbury, Ind. to Child Craft Industries and also closed plants in Culpepper, Va. and Corydon, Ind. In addition, Keller began to move away from the manufacture of furniture to focus on the distribution of products imported from China. Ultimately, however, it was too little, too late, according to statements made by Richardson. As the company moves forward, changes in management will take place as well. Keith Williams, president and chief executive officer, will leave the Keller management team to focus on identifying an attractive operating business to acquire. He will remain on the board of directors. David Richardson, the current chief operating officer, will assume the roles of president and CEO. STATE Newswoman Diane Sawyer has been selected to receive the first Kentucky Distinguished American Award. Presented by The Happy Chandler Foundation, the new award recognizes individuals born in Kentucky who has gained national acclaim for their work. “Happy Chandler wanted to be remembered for helping boys and girls get a quality education,” said Rob Bromley, president of the Chandler Foundation. “As these students graduate, many will return to their hometowns to help their local community grow and prosper. We’re building leaders throughout Kentucky.” “We are extremely pleased to honor Diane,” Bromley continued. “She is proud of her Kentucky roots and promotes that when she can. She exemplifies the intent of this award because she’s an encouragement to others, and our youth need that kind of encouragement.” The awards banquet will be held on July 30 at the Lexington Center’s Bluegrass Grand Ballroom. STATE
Kentucky Community & Technical College System (KCTCS) will utilize state funds to offer a course to teach farmers how to effectively use computer technology to keep financial records, keep inventory and livestock records, do research and marketing on the Internet, communicate through e-mail and other general computer functions. Entitled “Computers for Farm Use,” the course is unique to the Commonwealth, with curriculum designed specifically for farmers. The course will be available to tobacco producers in the three areas of the state with the most tobacco dependent counties: Northeast - Robertson, Bracken , Lewis, Menifee, Mason, Harrison and Nicholas; North central - Trimble, Owen, Grant, Henry and Pendleton; South-central - Barren, Metcalfe, Green, Hart, Adair. Russell and Taylor. Tobacco producers participating in the training course will be required to pay a one-time fee of $25. For more information on the program, contact Bruce Metzger with KTCTS at (859) 256-3362. LOUISVILLE
A partnership between the University of Louisville and Jewish Hospital, the institute strives to improve quality of life for heart failure patients by building on the success of Dr. Laman Gray’s work with ventricular assist devices and artificial hearts. The gift of $1.5 million over three years will create the Gheens Foundation Biosensor Research Center at the Cardiovascular Innovation Institute. The center will focus on developing new and improved biomaterials to make existing heart-assist devices more compatible with the human body and on biosensor research that may lead to innovative new devices for patients with heart failure. The institute’s program of clinically translational research includes six “centers of competence”: adult and pediatric patients, biomaterials innovation, biosensor innovation, future regeneration proteomics, information management and medical education. The institute facility, to be located on the U of L Health Sciences Center campus in the Louisville Medical Center, will include an expanded research facility plus training and administrative space equipped with the latest technology. Funding includes a $15 million investment from Jewish Hospital, a $5 million grant from Kosair Charities, $6.8 million from the Office for the New Economy and nearly $6.2 million in federal earmarks secured by Sen. Mitch McConnell.
OHIO Cincinnati-based Procter & Gamble has signed a deal to acquire 100 percent of The Gillette Company in a deal valued at $57 billion. P&G products include market leaders such as Tide detergent, Pampers diapers, Folgers coffee, Crest toothpaste, and many other household and personal hygiene items. “This combination of two best-in-class consumer products companies, at a time when they are both operating from a position of strength, is a unique opportunity,” said A.G. Lafley, chairman, president and chief executive of Procter & Gamble. “Gillette and P&G have similar cultures and complementary core strengths in branding, innovation, scale and go-to-market capabilities, making it a terrific fit.” “This merger is going to create the greatest consumer products company in the world,” said Warren E. Buffett, chairman and CEO of Berkshire Hathaway Inc., Gillette’s largest shareholder. “It’s a dream deal.” The transaction is expected to close by fall 2005. TENNESSEE There was a time that Nashville was only thought of in terms of country music and the Grand Ol’ Opry. Now, it seems, the city is proving there’s plenty of substance behind the sound. In the last fiscal year, Nashville saw more than 30 new company headquarters and/or major facilities move to the area, representing more than 11,000 new jobs. In addition, 59 companies that already had a presence in the area announced plans to expand, generating some $531 million in new capital investment.
Business Briefs CENTRAL KENTUCKY
EASTERN KENTUCKY
FLORENCE
LEWIS COUNTY
FORT WRIGHT
FRANKLIN
HEBRON
LEWISPORT
LEXINGTON
LOUISVILLE
MORGANTOWN
PULASKI COUNTY
RICHMOND
SHELBYVILLE
SOMERSET
WILLIAMSBURG
STATE
INDIANA
OHIO
TENNESSEE
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Copyright 1996-2005, by Kentucky Business Online. All rights reserved. Editorial content
is copyright 2005, Lane Communications Group The Lane Report is a trademark of Lane Communications Group. All other trademarks are the property of their respective owners. |
In an effort to attract major national and international sporting events and franchises to the commonwealth, Gov. Ernie Fletcher has announced the creation of the Kentucky Sports Authority (KSA). The KSA has been placed in the Commerce Cabinet, where it can most effectively join with the state’s Parks and Tourism division to promote the commonwealth as an attractive location for both amateur and professional events.
The merger, which has been unanimously recommended by Aptamera’s board of directors, will enable an accelerated pace of development for Aptamera’s anti-cancer technology. That technology includes AGRO100, the company’s lead anti-cancer drug, which has recently been tested in a Phase I clinical trial at the James Graham Brown Cancer Center at the University of Louisville.
Less than eight years after establishing its North American headquarters in Florence, automotive supplier ZF Group is relocating to a suburb of Detroit. 
CLARK Material Handling Company has opened a new 152,000-sq.-ft. worldwide headquarters facility in Lexington that houses the company’s sales and marketing, finance, customer service engineering, aftermarket service and support, engineering, ISD, research and development and manufacturing as well as a product showroom. 
Company officials said the shut-down will be implemented in phases, beginning in April. 
Several minority owners of the Legends with Lexington Professional Baseball will join Legends President and CEO Alan Stein as minority owners of the Legends with Fun Entertainment. Stein will also become Fun Entertainment’s COO and will operate the Legends and the recently purchased Southwest Michigan Devil Rays of the Midwest League from Lexington.
Curlander was also voted as the best overall CEO in the Imaging Technology section of the list. The rankings were compiled based on votes from nearly 1,700 investment professionals at some 500 brokerage and asset management firms. For a complete listing, visit www.InstitutionalInvestor.com.
The Keller Manufacturing Company has announced that it plans to sell its furniture operations and assets and will seek to acquire a new company. 
The Chandler Foundation provides scholarships to Kentucky students attending college in the Commonwealth. 
The Kentucky Agricultural Development Board has approved $80,000 to assist in the funding of computer training courses targeting tobacco producers in Kentucky. 
The Gheens Foundation in Louisville has committed $1.5 million to the Cardiovascular Innovation Institute to support research critical to the development, testing, and clinical trials of new heart-assist devices.
Gillette, headquartered in Boston, has been in business since 1901. The company markets consumer products such as Gillette razors and blades, Duracell batteries, Oral-B toothbrushes and Braun shavers and small appliances. 
Nashville was recently ranked as the top city in the nation for businesses interested in relocating or expanding their operations. The ranking is the result of a survey, conducted by Expansion Management magazine, that polled more than 80 professional site location consultants. The consultants were asked to list the top cities for relocations and expansions based on the following criteria: business climate, work force quality, operating costs, incentive programs and ease of working with local political and economic development officials. 
Exstream Software has opened a new office in London, England to sell and support the company’s personalization software solutions to businesses in the U.K. and Ireland. The new location is Lexington-based Exstream’s fifth international direct sales facility. 
Louisville’s Brown Hotel has been selected as the sole Kentucky hotel to be honored with the inaugural Readers’ Choice Award by ConventionSouth magazine. The award recognizes and honors meeting sites that have shown exemplary creativity and professionalism to groups. The 293-room downtown hotel has recently undergone a $1 million renovation that included high-speed wireless Internet access throughout the hotel, offered free of charge to hotel guests. All meeting rooms have unlimited computer wireless capacity at no extra charge and portable computers are also available for complimentary use in the hotel’s restaurant and the lobby bar.
The Board of Directors for Yum! Brands Inc. has authorized the repurchase of shares of the company’s outstanding common stock up to an additional $500 million over the next 12 months. In May 2004, the Board authorized the repurchase of shares up to $300 million, which is expected to be completed during the first half of 2005. “The Board’s action reflects our belief that the company’s shares represent an outstanding long-term investment opportunity given the company’s high return on invested capital, performance of our global portfolio of businesses; unique international growth prospects, including China; and multibrand innovation in the U.S.,” said Yum Chairman and CEO David C. Novak. 
Beginning with its 2006 models, Ford Motor Co. plans to offer factory-installed Sirius Satellite Radio systems in nearly 20 of its vehicles lines, including the Ford Explorer and Mercury Mountaineer, which are produced at the Louisville Assembly Plant. Vehicles sold with the factory-installed system will include a six-month subscription for the service. Sirius anticipates acquiring up to a million new subscribers over the course of the 2006-2007 vehicle production as a result of the Ford-installed systems.
Captain D’s, a Nashville-based fast-food seafood chain, has been bought by two investment firms for $150 million. Charlesbank Capital Partners, headquartered in Boston, manages more than $1 billion in capital and is also owner of the Papa Murphy’s pizza chain. Grotech Capital Group has offices in Maryland and Virginia and manages approximately $1 billion in capital, with investments primarily in the Mid-Atlantic and Southeast regions. Grotech is the former owner of Long John Silver’s and A&W Restaurants, which it sold to Louisville-based Tricon Global Restaurants for approximately $320 million in 2002.