VALASSIS PURCHASES NCH MARKETING SERVICES

Marketing and connective media firm Valassis acquired NCH Marketing Services for $60 million last week. The acquisition was paid for out of Valassis' existing cash, which totaled $97.2 million on December 31, 2002.

Deerfield, Illinois-based NCH, a coupon processing and promotion information management company, is a logical extension for Valassis, which has headquarters in Livonia, MI. The deal provides Valassis with a strong international infrastructure and 30 years of NCH international experience. "The combination of our industry knowledge, resources and relationships with manufacturers and retailers will stimulate our growth worldwide," said Brian J. Husselbee, President and CEO of NCH. Husselbee and the NCH management team will remain in their current roles at NCH.

Under the terms of the transaction, Valassis purchased the privately held shares of NCH. A private equity firm held approximately 90% of the equity of NCH with the remaining shares held by management and other minority shareholders.