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’Tis the Season to Be Hunting for Bargain Businesses

Business in the North County - Ted Owen

The availability of capital is scarce, but to some companies this is hunting season. Armed with lots of cash, the hunters are plucking prize game left and right.

An example is the recent purchase of SeaWorld San Diego by The Blackstone Group. The New York-based equity firm paid $2.3 billion for the 10-park chain, including the one located near Mission Bay.

This isn’t the first time the Blackstone hunters have come calling in San Diego County. Blackstone owns many companies, including the Merlin Entertainments Group, which owns — among other things — Legoland in Carlsbad and worldwide. Merlin, the entertainment subsidiary of Blackstone, also operates 24 aquariums in Europe, recently built a 40,000-square-foot Sea Life Aquarium in Carlsbad and is submitting plans for a 250-room, theme-based hotel adjacent to the park. It also owns Universal Studios in Orlando, Fla., and Madame Tussauds wax museums worldwide.

The Blackstone management team is providing its own stimulus program by plucking prime businesses during the downturn. The synergy between Legoland and SeaWorld could improve the local numbers big time as the company upgrades and adds to the facilities.

The two parks had more than 6 million visitors this year. Blackstone also owns the chain of 2,896 Hilton hotels.

Bad economic times don’t affect all companies the same way it appears Blackstone has been positively influenced. It seems the private-equity giant has all of the stimulus program it needs.

In other North County news:

• The Oceanside Museum of Art had a stimulus injection. It received a $300,000 grant from the James Irvine Foundation. The museum was one of four in San Diego County and 26 others statewide to share $10.2 million in grants from the foundation.

• Carlsbad-based Mellace Family Brands made the Inc. magazine 5000 list, coming in at 2,711. The snack food innovator is known for a diverse product line that includes nuts, peanuts, snack mixes and enrobed chocolate items.

It also ranked 66th in the magazine’s food and beverage sector. The 75-employee firm went from $9.4 million in sales in 2005 to $19.6 million in 2008, more than doubling its revenue.

• The Defense Department’s purse strings were loosened with the Oct. 2 announcement of $241 million in contract work. The biggest contract, which was for $65.5 million, went to General Atomics for the unmanned aircraft program, but North County projects also were on the list.

Barnhart got $29.5 million to design and build the Wounded Warrior Headquarters and Wounded Warrior Hope and Care Center at Marine Corps Base Camp Pendleton. Bonsall-based RQ Construction received $28 million to design and renovate the Navy Exchange Navy Lodge at Naval Air Station North Island.

Last but not least, AMEC Earth and Environmental got a $24.8 million contract to do environmental remediation at Stuart Mesa East Agricultural Fields at Camp Pendleton. Overall, Camp Pendleton will be creating thousands of jobs in the next five years while spending $5.2 billion in construction work and $700 million for a new Navy hospital on the base.

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  February 8-14, 2010
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