BREA, CA - September 19, 2013 - Harte-Hanks, Inc. (NYSE: HHS), an international direct and targeted marketing company, today announced it has entered into a definitive agreement to sell the assets of its Shoppers division to subsidiaries of OpenGate Capital for approximately $22.5 million in cash proceeds. The transaction is expected to close before September 30, 2013 upon satisfaction of customary closing conditions.
Dirks, Van Essen & Murray, a newspaper merger and acquisition firm in Santa Fe, New Mexico, represented Harte-Hanks in the transaction.
Robert Philpott, President and Chief Executive Officer, commented, "Shoppers joined Harte-Hanks in 1972. The PennySaver brand is very well known in California, with a loyal readership of its publications and a committed advertiser base. The staff in our Shoppers team is dedicated and hard-working. However we believe that the Shoppers business is no longer a good strategic fit with the other businesses within Harte-Hanks. The single-minded attention that OpenGate Capital will now give to Shoppers will put it in a much stronger position to thrive. I want to thank everyone in Shoppers for their many years of devoted service and recognize the contribution that they have made to Harte-Hanks.
"Harte-Hanks is now in the position to focus on our core business. We are in the early stages of the development of a new strategy for the Company. The sale of our Shoppers business will make that process more streamlined and it will enable us to work towards a more precise definition of our own story."
Harte-Hanks is an international direct and targeted marketing company that provides multichannel direct and digital marketing services and shopper advertising opportunities to a wide range of local, regional, national and international consumer and business-to-business marketers. Harte-Hanks Direct Marketing helps its clients obtain insight about their customers through database and marketing analytics. Based on that insight Harte-Hanks Direct Marketing designs, implements and executes multichannel marketing programs on behalf of its clients using direct and digital communications.
Los Angeles-based OpenGate Capital is a global private buyout firm specializing in the acquisition and operation of businesses throughout North America, Europe and Latin America. The firm's portfolio includes businesses operating in a variety of industries and generates revenues of nearly $2 billion.
It is not very usual to divest a portion after working with them for such a long time. Harte Hanks had made its first IPO in 1972 – the same year it purchased California Shoppers. So they had been together for 41 years! Harte Hanks’ management took the company private in 1984 and took it public again in 1993. They are divesting a portion after thirty four years of being public. DbaiG Bolee.com
By: Press Release | Dirks, Van Essen & Murray