Business News

Valassis Announces Sale of French Subsidiaries to HighCo

Thursday 21. August 2008 - Valassis (NYSE:VCI), one of the nation's leading media and marketing services companies, announced today the sale of its French subsidiaries to HighCo, a French marketing services company, for an undisclosed cash amount. The sale was completed on Aug. 18.

“With limited human and capital resources to invest in long-term international growth, it is imperative we invest where the greatest potential for growth and return on investment exists,” said Alan F. Schultz, Valassis Chairman, President and Chief Executive Officer. “With the completion of our state-of-the-art clearing operation in Poland, we will focus our efforts on the clearing business in selected countries in Europe, which has proven to be a more profitable business. We will continue to develop our media business in China and a few select markets in Europe where it drives profitable clearing volumes.”

Valassis’ business in France consisted primarily of media-related activities such as coupon and promotional distribution and in-store signage. Management had previously projected its French operations’ revenues and earnings before taxes, for the second half of 2008, to be approximately $16 million and $1 million, respectively.