InfoGroup has been sold to private equity firm CCMP Capital.
According to the Wall Street Journal, the selling price was $460 million. A statement released by infoGroup put the total value of the transaction at $635 million, including refinancing the company’s outstanding indebtedness.
InfoGroup said shareholders will receive $8 in cash for every share of the company they hold, according to the company statement.
“CCMP has extensive experience in direct marketing and business services. We believe our proprietary operating expertise together with targeted investments in people and systems can help Infogroup accelerate its drive toward higher value-added, ‘end-to-end’ marketing services and extend its market leadership,” said CCMP Capital managing director Kevin O’Brien, in a statement.
“Transitioning from a public to a private company brings many benefits to our shareholders, clients and employees,” said Bill Fairfield, Infogroup’s CEO, in a statement. “Our shareholders will receive an attractive, immediate and certain cash value for their shares. For Infogroup’s clients and employees, the merger will allow for greater stability, focus and flexibility to make the strategic, long-term investments that are needed to advance the Company’s leadership position, grow the core business, expand product solution offerings, improve overall cost structures and efficiencies, invest in technology and expand our global reach. Under the new partnership with CCMP, we can accelerate the positive momentum we started this past year.”
Rumors about infoGroup being on the selling block had been bubbling since last October, although the company has never confirmed it has sought suitors. In February, the company let around 40 employees, including several in upper management. CEO Fairfield has been operating under a contract that calls for his employment to be on an automatically renewing quarter-by-quarter basis, with both himself and the company able to terminate it.
During 2009, infoGroup sales stood at $499.9 million, down from $588.7 million in 2008. Additionally in 2009, infoGroup took a $6.8 million net loss, compared with net income of $4.8 million. The year ended Dec. 31.
While founder Vinod C. Gupta is no longer involved with the company’s day-to-day operations, he does sit on its board, and is its largest shareholder. His position with the company once the sale is complete is unclear.
CCMP’s Web site touts the firm as specializing in buyouts and equity investments in companies ranging from $500 million to more than $3 billion in size. Its traditional investment industries have included consumer, retail and services; energy; healthcare infrastructure; industrial; and media and telecom.
CCMP currently holds investments in Aramark Corp., Edwards Limited, Generac Power Systems, Grupo Corporativo ONO, Legacy Hospital Partners, Quiznos Sub and Warner Chilcott, among others.
