Valassis Communications Inc., Livonia, MI, will discontinue its Canadian direct response division, Carole Martin Gifts, effective Jan. 28, 2000.
“The decision to close this business is consistent with our long-term vision to be the leading marketing services company,” said Alan F. Schultz, chairman, president and CEO of Valassis Communications, in a statement. “In addition to being the only non-marketing services division in our product line-up, Carole Martin was not meeting our expectations.”
Acquired in 1995, Valassis of Canada consists of two divisions: Shop & Save FSI, a free-standing insert (FSI) distributed to nearly five million Canadian households, and Carole Martin Gifts, a mail-order merchandise business. Shop & Save FSI is “a natural extension to its U.S. FSI business,” according to the company, and will continue to operate.
Carole Martin Gifts division accounts for approximately $15 million in annual revenues. The discontinuance of this division will result in a one-time gain of $3 million to $4 million, after tax, due to tax benefits recognizable as a result of this transaction, said a statement.
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