Media and marketing services company Valassis communications announced that it would sell its French subsidiaries to HighCo, a French marketing services company, for an undisclosed cash amount.
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.
“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 CEO, in a statement. “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.”