Vestcom Divests Marketing & Business Communications Division to Focus on Retail In-store Marketing Services
Little Rock, AR, January 3, 2006 – Vestcom International, Inc., the leading provider of shelf-edge communications and specialized marketing services for retailers, today announced the completion of the sale of its Marketing and Business Communications (MBC) division to Bowne & Co. for $30 million in cash.
“With the divestiture of the MBC division completed, Vestcom enters 2006 with its resources focused entirely on our retail and packaged goods clients,” said Steve Bardwell, President and Chief Executive Officer of Vestcom International, Inc. “In the increasingly fragmented media age we now live in, influencing consumer behavior at the point-of-decision – that is, in the store and at the shelf’s edge – has never been more critical for our customers. This sale underscores Vestcom’s commitment to being the in-store marketing services partner of choice for the world's top retailers and their suppliers.”
Vestcom’s contributions have been most effective in the retail industry through its development of solutions that lift product sales, increase merchandising efficiency and reduce store operating costs. Currently, Vestcom serves more than 70% of the nation’s grocery, drug and mass merchandise retailers with innovations such as AdTags and Plan A+ Strips (three or four foot plan-o-gram pricing strips). Clients include 8 of the top 10 supermarket chains, 8 of the top 10 grocery wholesalers, 4 of the 5 top drug store chains and the second largest mass merchandiser in the country.
Vestcom’s MBC division services clients in the financial services, insurance, travel and gaming industries by providing solutions for the acquisition of new accounts, retention of existing accounts and growth in revenue per account. Following the divestiture, MBC will be integrated with Bowne Enterprise Solutions, and the combined entity will operate under the name Bowne Marketing and Business Communications (BMBC).
"This acquisition significantly expands our distributive digital print capabilities to provide our clients with even more flexibility to meet their customers' needs," said David Shea, president and chief operating officer of Bowne. "MBC's facilities are strategically located across the U.S. and Canada, allowing us to expand our innovative solutions and leverage our proven processes and outstanding customer service. In addition, this acquisition broadens our client base to include several additional vertical markets."
About Vestcom International, Inc
Vestcom International, Inc. the leading provider of shelf-edge communications and specialized marketing services for the retail industry -- delivering proven results and influencing behavior at the point-of-decision for the world's top retailers and their suppliers. The company processes more than 75 million price/promotion updates per week for over 47,000 retail stores through its ten production facilities. Vestcom's services benefit retail clients by reducing store operating expenses, increasing retail sales and improving product margins.
About Bowne & Co., Inc.
Bowne & Co., Inc., founded in 1775, is a global leader in providing high-value solutions that improve client communications.
Bowne Financial Print: The world's largest financial printer and leading EDGAR filer, specializing in the creation, management, translation and distribution of regulatory and compliance documents.
Bowne Enterprise Solutions: Digital composition, print, delivery and fulfillment of customized and personalized communications designed to enable companies to more-effectively target customers to increase market leadership.
Bowne Litigation Solutions:
Consulting, electronic discovery and software solutions, including DecisionQuest(R), one of the nation's largest trial research firms, brings clients fresh perspective resulting in better informed choices about strategies and tactics during the litigation process.
Bowne & Co. combines their capabilities with superior customer service, new technologies, confidentiality and integrity to manage, repurpose and distribute a client's information to any audience, through any medium, in any language, anywhere in the world.
Vestcom Investor Relations Contact:Steve BardwellPresident & CEO(800) 264-0965 – extension 600
For more information on Vestcom’s services, please visit www.vestcom.com or contact Tim McKenzie, EVP Sales & Marketing, at (800) 264-0965 – extension 630
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