GUS PLC
06 January 2004
6 January 2004
GUS plc
Disposal of Experian's US Outsourcing business
Experian, the global business solutions company owned by GUS plc, today
announces that it has sold its US Outsourcing activities to a management group
backed by Sterling Capital Partners, LP, a private equity firm. Experian will
receive total proceeds amounting to $28m, of which $20m is receivable in cash
and the balance in loan notes.
The Outsourcing business comprises one of the largest print and mail operations
in the United States, with around 1,400 employees and four lettershop locations
around the country. In the year to 31 March 2003, its sales were $87m. The
business operated on a single-digit EBIT margin.
GUS expects to incur a loss on disposal against book value of about $10m. In
addition, a charge of about $40m will be incurred in respect of goodwill
previously written off to reserves when the business was acquired in 1998 as
part of the Metromail acquisition.
Don Robert, Chief Executive Officer of Experian North America, said:
'This transaction will better serve the long-term needs of our print and mail
clients. We look forward to partnering with the buyers of the business to meet
the requirements of mutual customers through our joint marketing agreements.
'For our Marketing Services business, this allows us to focus on what we do best
- information, data management, decision support and analysis. Sales synergies
in North America between the Outsourcing business and our other units have been
limited. In addition, sales growth and operating margins in this business have
been well below those in our other activities.
'We would like to thank the employees of our print and mail operations for their
contribution and we wish them well for the future.'
Enquiries
GUS
David Tyler Finance Director 020 7495 0070
Fay Dodds Director of Investor Relations
Finsbury
Rupert Younger 020 7251 3801
Rollo Head
GUS announcements are available on its website www.gusplc.com.
Certain statements made in this announcement are forward looking statements.
Such statements are based on current expectations and are subject to a number of
risks and uncertainties that could cause actual results to differ materially
from any expected future results in forward looking statements.
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.