Morgan Keegan Sold to Raymond James in Blockbuster $930M Deal PAGE 18
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January 14-20, 2011, Vol. 5, Issue 3 12 Health Care & Biotech St. Jude celebrates 50th anniversary 31 Food & Wine Fredric Koeppel »looks at the PINNACLE SEEKS PAY CuTS: Memphis-based regional air carrier Pinnacle Airlines Corp. is asking restaurant industry union employees to take a 5 percent salary reduction. » Page 11 forecast for 2012. Trading Hands Morgan Keegan sold to Raymond James in blockbuster $930M deal PAGE 18 Photo: Lance Murphey The fate of Morgan Keegan & Co. Inc., whose Downtown tower is pictured here, and its 1,000-plus employees now rests in the hands of St. Petersburg, Fla.-based Raymond James, which bought the Memphis investment firm from Regions Financial Corp. for $930 million. While Raymond James said it plans to base its Fixed Income and Public Finance busi- ness in Memphis – meaning many local workers might keep their jobs – the full extent of the deal won’t be known for some time. 20 Sports Without power forward Zach Randolph in the lineup, the Memphis Grizzlies are limping into this year’s nationally televised Martin Luther King Jr. Day game at FedExForum. DAILY DIGEST: PAGE 2 FINANCIAL serviCes: PAGE 8 DUNAVANT AWARDS PAGE 17 SMALL Business: PAGE 22 LAW TALK: PAGE 24 A Publication of The Daily News Publishing Co. | www.thememphisnews.com 2 January 14-20, 2012 www.thememphisnews.com weekly digest Get news daily from The Daily News, www.memphisdailynews.com. MAAR: Home Sales Drop division. plosive devices used in Iraq and Afghanistan else will be.” Kimberly-Clark brand name products against U.S. and other coalition troops. Charles Duke, owner of the Beignet 10 Percent in December include Kleenex, Scott, Huggies, Pull-Ups, Two electronic components shipments Café, opened the New Orleans-inspired Memphis-area home sales for December Kotex and Depend. The corporation’s 2010 to Mayrow General Trading in Dubai were restaurant in April 2009. fell 10 percent from a year ago, with 898 sales were $19.7 billion. stopped before their delivery in 2006 by the Crow said Duke was gracious to the total sales recorded in the Memphis Area Matthew Stauber with Colliers Interna- Commerce Department’s Bureau of Industry community for its support but was unable Association of Realtors MAARdata property tional Chicago and Andy Cates with Colliers and Security. to continue with the business for personal records database, which includes records of International Memphis handled the transac- Earlier that year, the bureau had spe- reasons. all property transactions in Shelby, Fayette tion for the tenant. cifically denied such exports to Mayrow “It was just due to Charles’ other obliga- and Tipton counties. Tim Moore, vice president of leasing in based on information that the company tions and he had the opportunity to make Total sales for all of 2011 dropped 8.4 Industrial Developments International’s was buying the components specifically to a change,” Crow said. percent from 2010, with 12,790 recorded Memphis office, represented the landlord, make IEDs. Crow, a Nashville investor, bought the sales. Teachers Insurance and Annuity Asso- The other violations were three ship- 7,318-square-foot land at 124 G.E. Patterson Average sales price year-over-year for Q4 ciation – College Retirement Equities Fund ments in 2004 of printer components from in 2007 and completely renovated it, adding was down 7.1 percent and for all of 2011 was (TIAA-CREF). the U.S. to Syria without an export license. 2,000 square feet onto the building. Prior off 2.9 percent at $125,448. IDI handles leasing and management to the Beignet Café, the space housed the Inventory was down 6.2 percent from for Airways Distribution Center, a master- Tri-State Defender. the previous month, with 7,194 units listed planned, Class-A business park built in 2005 Double J Smokehouse and Saloon plans for sale. Sales volume from 2010 to 2011 fell near Memphis International Airport. Double J Smokehouse to open Feb. 4, Crow said. 11.1 percent to $1.6 billion. Replacing Beignet Cafe Beignet Café and Blues Bar in Down- FedEx Pays $370K town Memphis’ South Main Historic Arts Gwin Scott Leaving Kimberly-Clark Signs To Settle Export Claims District is being replaced with a new res- EmergeMemphis Southaven Lease taurant venture. Memphis-based FedEx Express, a sub- The two-story dining room at 124 G.E. There’s no digital clock on the wall at Kimberly-Clark Corp., a global manu- sidiary of FedEx Corp., has come to terms Patterson Ave. is being filled by Double J local business incubator EmergeMemphis facturer of hygiene and personal health with the U.S. Department of Commerce Smokehouse and Saloon. The new eatery for its president like there is for the compa- products, has entered the local industrial on six alleged civil violations of U.S. export – owned by Jeff Stamm and other investors nies housed there, where all the clocks on a market in full force. regulations. – will feature a variety of ribs and steaks, ground level wall show a countdown until Construction for tenant improvements FedEx Express will pay a $370,000 civil said building owner Norma Crow, who the time when the companies will be as- is under way in Airways Distribution Center penalty. leases the space. sumed to be established enough to branch Building D, 228 Access Drive in Southaven, The allegations involved unlicensed ex- “We’re in there remodeling right now out on their own. where Dallas-based Kimberly-Clark has ports to Dubai and Syria including electronic and it’s going to really be nice,” Crow said. But if there were a clock for president leased 556,000 square feet for its health care components used in making improvised ex- “I’m excited about it and I think everybody Gwin Scott, it would show he’s reached his REVIVING 5,000 YEARS OF CIVILIZATION. SHEN YUN. For Chinese, the words evoke a sense of wonder, magic, and the divine. To audiences who have seen it, they recall the experience of a lifetime—a moment so powerfully beautiful it touches the soul. For 5,000 years in China, culture was heralded as a divine gift. Its glory was long the inspiration of countless artists and poets, until this herit- age was nearly lost… Today, New York-based Shen Yun Performing Arts seeks to revive this once-majestic tradition by creating a production worthy in its beauty of this noble history—something that enriches the lives of audiences in powerful, lasting ways. “A great boost. Discover the grandeur of a fantastically rich culture, that of classi- — Marguerite Piazza cal China, brought to life through brilliantly choreographed dance Famous Soprano and Philanthropist and mesmerizing, all-original orchestral compositions. Magnificently cosumed dancers—the world’s elite—move in poetic arrangements that evoke pastoral beauty, imperial drama, and the glory of an ancient civilization. This season, discover what art was meant to be. Discover Shen Yun. MARCH 6-7 7:30PM, 2012 CANNON CENTER Hotline: 1-888-389-1614 ALL-NEW SHOW | WITH LIVE ORCHESTRA Online: shenyun2012.com Price: $50, $60, $80, $90, $120 ShenYun2012.com www.thememphisnews.com January 14-20, 2012 3 Get news daily from The Daily News, www.memphisdailynews.com. weekly digest time to move on. Scott is shifting his role Bartlett operations by investing $4.8 mil- International Paper Former Miss. Gov. Chief Of from president to adviser so he can pursue lion in the company’s existing building on Declares Q1 Dividend Staff Join Butler Snow new business opportunities. Wolf Lake Road. Over a five-year period, It ends his seven-year run leading the the expansion will create 40 jobs centered Memphis-based International Paper has Former Mississippi Gov. Haley Barbour organization whose mission is to shep- on manufacturing medical device proto- declared a quarterly dividend of 26 cents per and his former chief of staff, Paul Hurst, have herd startups into sustainable existences types. share for the first calendar quarter of 2012. joined the law firm of Butler, Snow, O’Mara, via everything from the benefits of shared Tennessee Gov. Bill Haslam, Economic The dividend is payable March 15 to holders Stevens & Cannada PLLC. office space to the proximity with fellow and Community Development Commis- of common stock at the close of business The two men will work with the firm in early stage company owners in the Emerge- sioner Bill Hagerty and officials from Shelby on Feb. 15. the areas of economic development, govern- Memphis building, 516 Tennessee St., in the County made the announcement in Nash- IP executives also announced a $1 per- ment relations, strategic planning and busi- South Main Historic Arts District. ville Wednesday, Jan. 11. share regular quarterly dividend to March ness development. Butler Snow, which has Scott said he’s thought about the deci- Launch Medical focuses on helping 31 on the cumulative $4 preferred stock of a presence in Memphis, is one of the largest sion for the last several months and has surgeon-inventors develop ideas into mar- the company. That dividend is payable on law firms in the Southeast. a range of opportunities he’s currently ketable products. March 15 under the same terms. Barbour also is joining BGR Group, a lob- exploring. The company began in 2007 as a bying firm he cofounded. He also plans to hit EmergeMemphis board chair Amy How- medical device incubator, offering surgeon- the speaker circuit at political and business ell, CEO of Howell Marketing Strategies, said inventors medical device development events and has written a book about leader- Scott’s accomplishments at EmergeMem- opportunities. MSO Associate Conductor ship during Hurricane Katrina. phis have been many, from entrepreneurial In 2010, the company shifted from to Heading to Seattle Symphon recruitment to strategic alignments with the manufacturing market, partnering FedEx Corp.