Massachusetts is among the many states in which Hostess breads and snacks were at one time iconic foods until the company's bankruptcy in 2012. Now, a business sale has been approved by the court that will allow the company to liquidate the last of its major lines of products, bringing the sale price for the company's assets to a total of $860 million. Hostess has sold Drake's, the line that sold snack cakes, to McKee foods for $27.5 million. The company is also selling several bread and cake lines to United States Bakery Inc., Flowers Foods, Grupo Bimbo and other investors also purchased various lines including the famous Twinkie snack food. In each case, the company to which the business line was sold was the highest of several bidders.
Massachusetts residents may have heard about an app, created by a 17-year-old British boy, that has millions of downloads so far and has gained the attention of Yahoo, who purchased the rights for an amount rumored to be around $30 million. The business entity selection is said to be based not on a desire to use the app in Yahoo's lineup but rather to secure the algorithm that drives the performance.Summly, the young entrepreneur's venture into the app world, summarizes data from thousands of sources. The algorithmically-based summarizations make it easy for users to scan news or other information in a concise format. Yahoo is said to have "bought the math" rather than the app itself; in fact, the app has already disappeared from the iOS App store.
Although Harvard Business School graduates have been lukewarm about starting businesses in Boston, the city has much to offer a start-up company. The act of business formation should always take into account the benefits as well as the disadvantages of company start-ups, and Boston, which many feel is not friendly to entrepreneurs, can actually offer some benefits to the novice business owner. Although some experts state that entrepreneurs see Boston as having an inferior lifestyle and being unfriendly to business, the city has many advantages for business owners. Plenty of "start-up ready talent" is available in this college city, as well as mentorship from some of the country's best business owners. Boston is also full of people who have the vision to solve big business problems, including those who brainstorm creative solutions to the problems facing business owners.
Analogic Corporation, a company that specializes in medical imaging and aviation security, has announced its acquisition of Ultrasonix Medical Corporation. The business formation cost the company $83 million, which may be adjusted per the purchase agreement. Ultrasonix supplies ultrasound systems that are compatible with Analogic's current technology. The purchase will be accretive at the start during the fiscal year 2014.The company plans to combine the Ultrasonix brand of products with its own BK Medical brand to strengthen its Global Ultrasound Group. Ultrasonix has established sales channels and point-of-care products that Analogic hopes to use to improve its own status as a supplier of mobile ultrasound solutions. According to Analogic's leaders, the company is proud to be working with Ultrasonix and the professional experience the company brings to bear in the ultrasound market.
Business Council will meet in March 2013 to discuss new expansion planned for the town. Two people who will speak with the council are the commercial real estate developer in charge of the building of Tri Valley Commons and the economic development director. These two speakers will provide a synopsis of both economic development efforts and property development plans. Medway's economic development director has been negotiating with organizations across the region and the state of Massachusetts to solicit support for the town's economic and property development. She will be discussing marketing and regulations at the meeting. The commercial real estate developer will present an overview of the new plaza, which comprises of 35,000 square feet and has entered the permit stage.
Labor and utility costs could be blamed for the high cost of business formation in Massachusetts, according to a recent report. The Economic Competitiveness Benchmarking Report, published by the Business Leaders of Michigan, ranked each state's business climate in terms of obstacles and benefits. Massachusetts costs were said to be 22 percent more than the national average even though the Commonwealth scored well in the areas of education and talent. Experts are concerned that Massachusetts has reached a saturation point in terms of how many new business it can expect to support given the high cost of owning a company. Using figures from Moody's Analytics, experts state that Massachusetts business owners have higher costs than anywhere else in the country.
A business group in western Massachusetts has announced its endorsement of Mohegan Sun's business formation of a destination resort and casino in the city of Palmer. This new casino represents one of four proposals for the license granted to the region. The Quaboag Hills Chamber of Commerce cited the city's proximity to a major highway and four other states as factors in its decision to back the Mohegan Sun project. The Chamber expressed hopes that the casino will contribute to economic growth in the area. The Quaboag Chamber of Commerce represents businesses in 15 cities in the region. Mohegan Sun stated that it hopes to work in cooperation with the Chamber to promote an operator loyalty program for casino owners that will encourage local patronage of the business.
Companies interested in business formation for the purpose of selling medical marijuana are taking a closer look at Massachusetts. The state legalized the sale of marijuana for medical purposes in November's general election, and companies that already have stores in place to sell marijuana in other states are considering opening businesses in Massachusetts. One method of supplying marijuana is in pot-infused food products like sodas and chocolates; marijuana can even be added to bath salts. Companies are racing to put sales protocols and store locations in place to take advantage of the growing customer base as more states approve the medical and recreational use of the drug.
A massive business reorganization deal that will allow Clean Harbors to acquire Safety-Kleen was signed recently. Safety-Kleen is the largest recycling processor for used oil in the country. Clean Harbors has agreed to pay cash for the company's assets. Funding has been promised by Goldman Sachs, but the purchaser is exploring a number of financing options and has not yet stated exactly how financing will ultimately be done.Clean Harbors has stated that it considers the Safety-Kleen acquisition to be a positive development since it will enable the company to expand its waste treatment operations, particularly those involving waste oil. Safety-Kleen has been involved in environmentally friendly cleanup projects for nearly 50 years.
Over the past decade, U.S. cellphone providers have been involved in a ferocious competition to gain subscribers in a growing market. While some companies have found huge success through this competition, many others are now struggling to stay afloat. This week, a couple of those struggling underdogs reached a business reorganization deal that they hope will put them back in the race.