Tag: UPS

B-F closes $405M BenRiach deal; Bezos says Amazon isn’t gunning for UPS — but he wants ‘better prices’; and Taco’s new Chalupa is one of ‘grossest fast food items ever offered’

BenRiach Distillery
The distillery is in the Highlands of northern Scotland.

A news summary, focused on big employers; updated 3:47 p.m.

BROWN-FORMAN said today it had completed its previously announced acquisition of Scotland’s BenRiach Distillery Co. for £281 million ($405 million). The deal includes three BenRiach labels and brings Brown-Forman back into the single-malt scotch whisky business. “The GlenDronach, BenRiach, and Glenglassaugh single-malt brands are among the finest single malts in the world,” CEO Paul Varga said in a statement. The purchase includes three distilleries, a bottling plant, and the headquarters in Edinburgh. BenRiach was founded in 1826 — 44 years before Brown-Forman was launched (press release). Today’s announcement follows a published report two weeks ago that the Louisville spirits and wine company is considering selling its Finlandia vodka business amid a broader effort to focus on whiskey. Brown-Forman’s Louisville operations.

Jeff Bezos
Bezos

AMAZON CEO Jeff Bezos told a high-profile technology conference last night that the retail giant isn’t aiming to compete head-on with UPS and other shippers it now partners with. Instead, Amazon wants to pick up the slack when delivery services can’t handle the final stretch. He cited India and the U.K. as examples. “We have had to take over a lot of the last-mile delivery in the U.K. over the last several years,” he told the Code Conference, in wide-ranging remarks. “The Royal Mail ran out of capacity at peak” (Bloomberg). Bezos did, however, hint at another motivation: wrangling better terms on delivery contracts. “Better prices on transportation would be acceptable to us,” he deadpanned (Recode). The Amazon founder was “equally comic, candid, and clever as he offered his views on artificial intelligence, data privacy, free speech, leadership, streaming video, and aerospace” (Fortune).

Elsewhere, Amazon is hiring more than 1,000 workers for its new 855,000 square-foot distribution center opening this summer outside San Antonio; the company already has six other Texas centers, including another one in the San Antonio area (Houston Chronicle). Amazon has five centers in Kentucky, including two in the Louisville area employing 6,000. And with more than 20,000 workers, UPS is Louisville’s biggest private employer.

TACO BELL‘s newest menu offering — a Chalupa with a fried chicken shell — is one of the “grossest fast food items ever offered” (New York Daily News). How it’s made (BuzzFeed). Also, the company has started construction on a restaurant in Nitro, West Virginia (WSAZ).

Ford logoFORD recalled 1.9 million vehicles with certain Takata passenger-side frontal airbag inflators after Takata said the inflators were defective. The vehicles affected are 2007-2010 Ford Edge; 2006-2011 Ford Fusion; 2005-2011 Ford Mustang; 2007-2011 Ford Ranger; 2007-2010 Lincoln MKX, and 2006-2011 Lincoln MKZ, Zephyr and Mercury Milan (Reuters and press release); all about Takata’s airbag scandal. Separately, Ford said total U.S. vehicle sales in May declined 6% from a year ago, to 235,997. That was despite F-Series pickup sales posting a 9% gain, and van sales hitting their best May since 1978 (press release). Ford shares closed down 2.9% at $13.10.

KINDRED said it completed a deal where it’s buying four leased hospitals in Indianapolis, Houston, Denver and Colorado Springs, Colo., and selling two in Cleveland, one owned and another leased. The Louisville hospital and nursing home giant said it paid about $800,000 cash and additional cash consideration to Select Medical Holdings Corp. as part of the deal (press release). Separately, Kindred said it’s closing its Bashford Manor area nursing and rehabilitation center, where 153 employees care for 110 residents (Courier-Journal).

PAPA JOHN’S will be one of the first U.S. restaurant brands to enter Tunisia; it’s the second African country after Egypt to have one of the pizza chain’s franchises. The country in North Africa only recently opened its borders to franchising (Meat & Poultry). More about Tunisia.

GE is scaling back plans for a factory that will build big gas-powered engines in Welland, Ontario; the factory is now in Waukesha, Wisc. The company will create just 150 jobs at the new site, down from 350 at Waukesha, when it first announced the move in September. GE is taking advantage of tax incentives (CBC).

TEXAS ROADHOUSE got only a so-so review in Augusta, Ga., partly because of the restaurant’s signature item: steak. “My first bite of the filet seemed pleasantly salty, but as I went on, the meat was overwhelmed with salt — I couldn’t even finish it,” the reviewer said. “It was tender, but not the most tender filet I’ve ever had. And while I ordered it medium, it was more of a medium rare” (August Chronicle). The restaurant chain tweeted a recommended topping on Sunday:

In other news, the embattled Cahoots bar on Baxter Avenue in the Highlands is closing (Business First). Brawls had been a problem, leading a customer to post a truly gross review, complete with photo! “Blood on the men’s room sink,” wrote John R. “From one of the (many) fights I’ve witnessed at this place. Disgusting” (Yelp).

Ford recalls 271,000 F-150s from 2013-14; UPS boosts size of planned expansion; Missouri regulators to Humana: show me changes

A news summary, focused on big employers; updated 9:16 p.m.

2014 Ford F-150
A model year 2014 F-150 of the kind being recalled.
William Clay Ford, Jr.
Ford

FORD is recalling about 271,000 2013-14 F-150 pickups with 3.5-liter V-6 engines because the brakes may malfunction, the automaker said today. The company said it was aware of nine accidents but no injuries (New York Times). Also, Executive Chairman Bill Ford Jr. defended the automaker against blistering criticism by White House candidate Donald Trump, saying it should be held up as an example of a company doing things right. Trump has called Ford’s decision to build a $1.6 billion assembly plant in Mexico an “absolute disgrace” that would not happen if he becomes president (Detroit News).

In December, Ford said it would invest $1.3 billion in its Kentucky Truck Plant in Louisville, creating 2,000 jobs. The expansion is for the launch of the new 2017 Ford F-Series Super Duty truck (press release). More about Ford’s Louisville factories. Also, Ford said today it will release its May U.S. sales figures around 9:15 a.m. June 1, followed by a conference call to discuss the results (press release).

UPS is doubling the size of an expansion announced last fall that was already going to add another 300 jobs to the so-called Centennial Hub; it’s unclear whether the bigger project will require even more hiring  (Courier-Journal). UPS originally announced the project last October, saying it would cost $300 million and would be substantially complete by 2018 (press release).

HUMANA: Missouri’s insurance regulators are asking Humana and Aenta to make changes before the state approves their pending $34 billion merger announced July 3 (Business First).

KINDRED‘s shareholders approved the executive compensation plan during a non-binding advisory vote today at their annual meeting. They also re-elected the full slate of 11 directors to the governing board; the company didn’t provide a vote breakdown, which will likely come in a future regulatory filing (press release).

CHURCHILL DOWNS broke ground yesterday on a previously announced $25 million expansion of its Oxford Casino in Maine. The project includes a 106-room hotel, new dining, and an expanded gaming area. Churchill bought the casino in 2013 (WLBZ).

AMAZON said today it would open a second distribution center in Joliet, Ill., 46 miles southwest of Chicago. The company will create more than 2,000 full-time jobs at the facility in addition to the 1,500 full-time employees currently working at its existing Joliet center (press release). The city has 148,000 residents; more census facts. Also, the company plans to expand its Fresh grocery delivery service this year to new markets including Boston (Recode). More about Amazon’s Louisville area operations.

The Eagle logoIn other news, Bardstown Road is getting another craft beer restaurant: The Eagle, which has locations in Cincinnati and Indianapolis. It’s taking the space now occupied by El Camino, which is moving to another, undisclosed location two miles away and with half the current 300 seats (Insider Louisville). The Eagle will join the soon-to-open HopCat at Grinstead and Bardstown, which will have 130 craft beers and seating for 600. Also in the works: Sterling Brewing has announced plans for a restaurant at 1300 Bardstown Road (Courier-Journal). And there are already so many more.

Elsewhere in hospitality land, the average Louisville hotel room rate will jump 13.9 percent to $119.35 by 2020, according to a new report (Insider Louisville).

Finally, U.S. stocks soared for the second consecutive day after positive economic data, rising oil prices, and a new debt deal for Greece. The Dow Jones Industrial average and other major indices all closed up nearly 1% after similar gains yesterday (Google Finance). Nearly all 11 big-employer shares in the Boulevard Stock Portfolio rose, too.

For Humana’s top brass, Anthem-Cigna’s private ‘squabbles’ offer a window on mega-merger pitfalls

A news summary, focused on big employers; updated 6:12 p.m.

anthem-cigna-logos-thumb-400Quarrels have broken out behind the scenes of Anthem’s proposed acquisition of Cigna, as the health insurers seek regulatory approval for their landmark $48 billion deal, according to a series of letters reviewed by The Wall Street Journal. “People on both sides say the squabbles could delay or derail antitrust approvals, which are typically harder to obtain if both parties aren’t in sync,” the Journal is reporting today.

The deal was announced July 24, three weeks after Aetna and Humana announced their own planned $34 billion tie-up, as big insurers sought scale and efficiency in a shifting U.S. health care industry. The Anthem-Cigna dissension suggests their proposal may fall behind in the regulatory review,  worrisome because it’s “thought to have better odds if reviewed alongside Aetna-Humana,” the Journal says.

On Friday, Aetna CEO Mark Bertolini said he expected his company’s purchase of Humana would close during the second half of the year. He also said he couldn’t rule out the possibility Aetna might move its headquarters from its historic Hartford home once the deal is complete.

In other news, new federal overtime regulations could force employers to boost the pay of about 149,000 Kentuckians, although mostly at small and mid-sized companies. Starting in December, salaried employees earning $47,476 or less annually must be paid time-and-a-half for working more than 40 hours in a week; that’s twice the current level (Courier-Journal).

China fund and KKR drop talks to buy into Yum China; ‘Pac Man’ takeover of CJ-owner’s tough to swallow, and another Taco Cantina on the way

A news summary focused on big employers; updated 3:09 p.m.

tacobell-restaurant
The first Taco Bell Cantina in Chicago; next up is in Berkeley, Calif.

YUM: A consortium led by sovereign wealth fund China Investment Corp. and private equity firm KKR has ended talks to buy a stake in Yum’s 7,205-restaurant China unit, partly over Yum’s unwillingness to give up majority control because of the negative tax implications that would pose (Reuters).

GANNETT: Tribune Publishing’s defensive “Pac-Man” takeover of Courier-Journal owner Gannett would be a mouthful (New York Times). Meanwhile, Gannett’s unsolicited bid for Tribune got more personal yesterday, with each company calling out the other’s leaders by name and questioning management’s decision-making (Chicago Tribune).

TACO BELL is planning one of its next new Cantinas for Berkeley, Calif., across from San Francisco. The new formats, which target urban millennials and include alcohol on the menu, were announced last fall for Chicago and San Francisco (San Francisco Eater). The San Francisco Cantina is still alcohol-free — “no beer, no sangria, none of the boozy Mountain Dew slushies that they serve at the flagship Cantina in downtown Chicago,” thanks to a liquor license dispute with the neighbors (SF Eater, too). Taco Bell last week announced plans for four new upscale concept restaurants in Southern California.

KFC: That chicken-flavored nail polish the Internet fell in love with was a one-off by a Hong Kong franchisee; it won’t be sold company-wide. “As a brand strategy, it’s not something we will pursue,” Yum China CEO Micky Pant said in an interview yesterday after the fast food giant’s annual shareholder meeting in Louisville (Courier-Journal). Meanwhile, a video about the polish has gone viral, racking up nearly 231,000 views:

CHURCHILL DOWNS: Two horses have died today in separate incidents after races leading up to this afternoon’s Preakness Stakes (WDRB).

UPS will invest $177 million expanding its distribution hub in Columbus, Ohio, creating 75 jobs on top of the 748 employees already there (Columbus Business First).

PIZZA HUT: New Orleans police arrested a man for doing something very naughty on a mattress behind a Pizza Hut restaurant (Times-Picayune).

In other news, the Westport Village shopping center has been sold to Atlanta-based Hendon Properties for $23.8 million (Courier-Journal). The center at night, below:

Westport Village Shopping Center

Aetna chief doesn’t rule out HQ move; CJ owner Gannett now looks like a takeover target, too

A news summary focused on big employers; updated 3:53 p.m.

aetna-headquarters
Aetna’s headquarters in Hartford, where it was founded in 1853.

HUMANA: Aetna’s CEO did little today to allay concerns the insurance giant might leave its historic Hartford home after its workforce doubles to 110,000 with the pending Humana merger. Mark Bertolini told the annual stockholders meeting that Aetna was required to establish a Kentucky presence when it sought to buy Humana. “Having said that,” he told shareholders, “the rest of all of our real estate is under review.” He expects the $37 billion deal to close in the second half of the year. (Hartford Courant). Humana’s stock closed at $169.60 a share, up less than 1%, but enough to make it the best-performing stock this week among Boulevard’s portfolio of big local employers.

GANNETT: Tribune Publishing is reportedly turning the tables on Gannett by planning a hostile offer to buy the owner of The Courier-Journal, USA Today and more than 100 other dailies. “I am going to bid on Gannett,” CEO Michael Ferro told five dozen Los Angeles Times staffers, according to a confidential source. “I have lawyers working on it.” That would counter Gannett’s sweetened all-cash offer this week, to $15 a share, or about $475 million, excluding  $385 million of outstanding debt (Politico Media).

UPS CEO David Abney doubts package delivery by drone will be as ubiquitous as some forecast. Speaking to a Boston business conference, he said: “I don’t believe there are going to be 10,000 to 20,000 of these flying over metro Boston delivering dog food and toothbrushes. I just don’t believe the economics of those work out” (Boston Business First).

AMAZON, which is developing Prime Air to transport packages to customers within 30 minutes via drone, could learn something from DHL’s drone delivery program (Business Insider).

PAPA JOHN’S: Baseball-related pizza promotions are now so pervasive, they extend to the local level, thanks to Papa John’s status as the “official pizza” of 22 big league clubs (538).

BROWN-FORMAN is now offering pregnant employees 12 weeks’ paid leave, about twice as much as the most generous maternity leave plans of the area’s 10 biggest employers (Insider Louisville).

CHURCHILL DOWNS: Which horses stand the best chances at tomorrow’s 141st Preakness Stakes (New York Times).

Donald Trump
Trump

In other news, presumptive GOP White House nominee Donald Trump addresses the 70,000-member NRA annual meeting today at the Kentucky Exposition Center (NBC).

This just in:

Uber using Fusions in new self-driving cars test; KFC hit over antibiotics use, and Bezos strikes back at Trump

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Activist group created “Auntie Biotic” mascot in campaign targeting KFC.

A news summary focused on big employers; updated 6:06 p.m.

FORD: Uber said today it’s using hybrid Fusions as it starts testing self-driving cars in Pittsburgh (Fortune). Also, Apple co-founder Steve Wozniak and former Ford CEO Alan Mulally will receive awards at an innovation conference in Lexington starting Sunday (Daily Journal).

KFC: Activists are pressing KFC to stop buying chicken from industrial farms that use antibiotics meant for humans. The Natural Resources Defense Council created a mascot, Auntie Biotic, to draw attention to its cause (blog post). Australian restaurant operator Collins Foods is paying $19 million for 13 KFC outlets around the New South Wales and Victorian border (Business Insider). And teenage inmates who were involved in a tense standoff with police in Melbourne were promised KFC in exchange for their surrender (Daily Mirror). Yum shares closed at $80.07, little changed.

AMAZON CEO Jeff Bezos defended the company against criticism by White House hopeful Donald Trump, who said earlier that the retail giant was “getting away with murder, tax-wise (Seattle Times). Also, how Google Home could be Amazon Echo’s worst nightmare in the digital home assistant space (Verge). Shares closed at $698.52, up $1.07.

N0013675299--718983
Booth

TACO BELL: How the company turns fried chicken into taco shells (Consumerist). Meanwhile, the Internet can’t get enough stories about Florida’s Jack Booth, who woke up from a 42-day coma and almost immediately demanded 8½ crunch tacos. “I didn’t expect him to eat as many as he did, but he sure crushed it,” said friend and co-worker Andrew Haldeman (Naples News).

CHURCHILL DOWNS: Otabek Umarov, the owner and trainer of Looks to Spare, the longshot third-place finisher in last year’s Grade 1 Clark Handicap, has been ejected from the track’s facilities and suspended by state stewards (Racing Form).

TEXAS ROADHOUSE has weighed in on new overtime regulations mandated by the Obama Administration (Insider Louisville).

UPS is preparing to add on-demand 3-D printer services (3 D Print)

In other news, Louisville ranked No. 18 on employment site Glassdoor’s list of the 25 best U.S. cities to find work, well down from No. 8 a year ago (Business First). Glass door says its picks stand out for ease in finding work, affordability, and job satisfaction. This year’s No. 8 is Raleigh-Durham, N.C.;  full list.