Valassis Sells French Operations to HighCo

Valassis has sold its French subsidiaries to HighCo, a French marketing services firm. Complete details of the sale, which was completed Aug. 18, were not disclosed, although according to Valassis the deal was a cash transaction.

Valassis’ French operations include coupon and promotional distribution and in-store signage. According to management projections, these operations were expected to generate $16 million in sales, and $1 million in pre-tax earnings, during the second half of 2008.

"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.

Schultz continued, "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. We will continue to develop our media business in China and a few select markets in Europe where it drives profitable clearing volumes."