Valassis Nabs ADVO in $1.3B Blockbuster

LIVONIA, MI—Direct mail marketing specialist ADVO Inc. will be added to the Valassis stable in a $1.3 billion deal, or $37 per share. The company will retain Valassis’ headquarters here and will also maintain a presence in Windsor, CT.

Valassis expects the acquisition to be accretive to 2007 cash earnings per share, excluding certain items. Total revenue for the combined company is projected to be $2.65 billion in 2007. Synergies are projected to result in annual cost savings of $40 million, beginning next year.

ADVO reaches 114 million households with its ShopWise shared mail advertising.

“Together, Valassis and ADVO will be well positioned for growth as a more diversified company with complementary capabilities, product offerings and clients,” said Alan F. Schultz, Valassis chairman, president and CEO. “We will have an unsurpassed ability to deliver value and savings to consumers where, when and how they want, and to do so with advanced analytics and targeting capabilities that maximize advertisers’ return on investment.”