DALLAS--(BUSINESS WIRE)--Jan. 5, 2015--
A.
H. Belo (NYSE: AHC) today announced it purchased majority ownership
of Distribion,
Vertical
Nerve and Marketing
FX for $15.3 million. The three companies specialize in local
marketing automation, search engine marketing, direct mail and
promotional products.
“The addition of these three new companies to our portfolio represents
an opportunity for our advertising clients to take advantage of data
driven marketing automation technology and services,” said Jim Moroney,
chairman, president and chief executive officer of A. H. Belo. “These
are first-class companies, and we are excited to provide new
opportunities to help our clients grow their businesses.”
The existing management team for Distribion, Vertical Nerve and
Marketing FX, led by CEO Tim Storer, invested alongside A. H. Belo in
the transaction and will maintain their current roles in day-to-day
operations. A. H. Belo’s acquisition of the three companies represents
another step in its ongoing strategy to diversify the Company’s revenue
sources.
“We are very excited to now have the resources of such a respected
company like A. H. Belo behind us to help support and accelerate our
ongoing growth initiatives,” said Storer. “I’m looking forward to
hitting the ground running in 2015 and taking each of these companies to
the next level.”
The three companies will offer A. H. Belo clients innovative marketing
solutions to position their businesses for profitable growth. In 2015,
the venture is expected to contribute between $9 - $11 million in
revenue and $800,000 - $1.3 million EBITDA for A. H. Belo. The
intermediary holding company will be consolidated into the A. H. Belo
financial portfolio. Stephens Inc. served as financial advisor to A. H.
Belo on the transaction.
Each of the companies was designed to create a more efficient and
effective method to market products and services, with each filling
critical needs for businesses. Distribion provides a local marketing
automation solution that helps businesses generate better results from
their marketing campaigns. Vertical Nerve is a digital optimization
agency that enables clients to acquire more Web traffic and improve
their online conversions. These services, combined with Marketing FX, a
turnkey resource that provides print, packaging, ad-specialty and
fulfillment services to companies nationwide, will deliver premium local
print and digital marketing solutions for A. H. Belo clients. Each
company is based in Dallas, Texas.
About A. H. Belo Corporation
A. H. Belo Corporation (NYSE: AHC) is a leading local news and
information publishing company with commercial printing, distribution
and direct mail capabilities, as well as businesses with expertise in
emerging media and digital marketing. With a continued focus on
extending our media platform, we are able to deliver news and
information in innovative ways to new audiences with diverse interests
and lifestyles. For additional information, visit ahbelo.com,
email invest@ahbelo.com.
Forward-Looking Statements
Statements in this communication concerning A. H. Belo’s business
outlook or future economic performance, anticipated profitability,
revenues, expenses, dividends, capital expenditures, investments,
dispositions, impairments, business initiatives, acquisitions, pension
plan contributions and obligations, real estate sales, working capital,
future financings and other financial and non-financial items that are
not historical facts, are “forward-looking statements” as the term is
defined under applicable federal securities laws. Forward-looking
statements are subject to risks, uncertainties and other factors that
could cause actual results to differ materially from those statements.
Such risks, uncertainties and factors include, but are not limited to
the following: changes in capital market conditions and prospects,
changes in advertising demand and newsprint prices; newspaper
circulation trends and other circulation matters, including changes in
readership methods, patterns and demography; audits and related actions
by the Alliance for Audited Media; challenges implementing increased
subscription pricing and new pricing structures; challenges in achieving
expense reduction goals in a timely manner and the resulting potential
effect on operations; challenges in consummating asset acquisitions or
dispositions upon acceptable terms; technological changes; development
of Internet commerce; industry cycles; changes in pricing or other
actions by new and existing competitors and suppliers; consumer
acceptance of new products and business initiatives; labor relations;
regulatory, tax and legal changes; adoption of new accounting standards
or changes in existing accounting standards by the Financial Accounting
Standards Board or other accounting standard-setting bodies or
authorities; the effects of Company acquisitions, dispositions and
co-owned ventures and investments; pension plan matters; general
economic conditions and changes in interest rates; significant armed
conflict; acts of terrorism; and other factors beyond the Company’s
control, as well as other risks described in the Company’s Annual Report
on Form 10-K for the year ended December 31, 2013, and in the Company’s
other public disclosures and filings with the SEC.
Source: A. H. Belo Corporation
A. H. Belo Corporation
Kerri Fulks, 972-499-6617
kerri.fulks@hck2.com
