Dimac to Explore Sale of AmeriComm Holdings' Noncore Business Units
The move is part of Dimac's ongoing activities to improve profitability, execute its growth plan and eliminate excess debt. The company filed for Chapter 11 bankruptcy protection in April, in an effort to reorganize its capital structure and facilitate its revitalization plan.
The business units that will be placed for sale are AmeriComm Direct Marketing, Convertagraphics, Double Envelope, Diversified Assembly, Label Art and Transkrit. These business units are operating divisions of AmeriComm Direct Marketing Inc.
These units specialize in multipart packages, in-line formats and personalized direct mail.
"As part of our program to restructure Dimac's capital structure and implement our revitalization plan, we have determined that certain of our business units do not fit strategically with our long-term vision for the company, which is highly focused on direct marketing services," said Robert "Kam" Kamerschen, chairman and CEO, Dimac, St. Louis.
"While Dimac continues to generate significant amounts of cash, there would not be enough to fund the capital investments required to allow all our business units to grow and compete effectively in the foreseeable future. This has driven our decision to seek new owners who could help the noncore businesses meet their growth objectives."
Proceeds from any sales would be used to reduce Dimac's debt level in conjunction with the development of a new capital structure for the company. Some funds would also be available to invest in the growth of the remaining core businesses.
The business units that remain include Dimac Direct, DMW Worldwide Inc., MBS/Multimode Inc. and Palm Coast Data.
Dimac has retained Gruppo, Levey & Co., an investment banking firm serving the direct marketing industry, to explore the sale of the noncore units.
"In looking for potential buyers for each of the noncore units, our objective will be to identify buyers who are committed to growing the business to its full potential and who value and appreciate their employees," Kamerschen said.