CARLON BUYS PEPPERS & ROGERS

Carlson Marketing Group announced it will acquire customer strategy consultants Peppers & Rogers Group. Both companies will retain their individual brands and headquarters and Peppers & Rogers will continue to publish 1to1 Magazine. Some Carlson strategy specialists will join Peppers & Rogers’ staff. Founded more than 10 years ago by Don Peppers and Martha Rogers, the company became a leader in the concept of “customer relationship management” and coined the term, “one to one” marketing. The economy took a toll on Norwalk, CT-based Peppers & Rogers in recent years, which resulted in layoffs that whittled the company down to 150 employees. However, Peppers & Rogers still boasts an impressive client roster, including AT&T Wireless, Ford Motor Co. and Visa International. The acquisition is the second in recent weeks for Minneapolis-based Carlson, which also purchased Learning Solutions Group, Inc. from Boston-based Dove Consulting.

HELEN OF TROY SNARES BRUT FOR $55 MILLION

El Paso, TX-based Helen of Troy Ltd., a personal-care products manufacturer, agreed to buy Unilever’s Brut line of men’s deodorants for $55 million. The deal is expected to close by the end of the year. The sale is part of Unilever’s strategy to dump brands not in line with its long-term business plan. The Brut line generated $45 million in sales in 2002 and is expected to generate more than $40 million in sales for Helen of Troy over the next 12 months.

BOISE CASCADE GETS GREENLIGHT FOR OFFICEMAX

Paper company Boise Cascade Corp. may go ahead with its planned acquisition of office supply chain OfficeMax, Inc. after antitrust officials approved the deal. In July, Boise Cascade announced that it had agreed to pay $1.5 billion for Shaker Heights, OH-based OfficeMax, which generated $4.8 billion in sales in 2002. Last year, Boise Cascade posted sales of $5.4 billion.

YUCAIPA SUES SAFEWAY OVER DOMINICK’S SALE Yucaipa Cos. has sued Safeway Stores for allegedly mishandling Safeway’s sale of Dominick’s Finer Foods. Safeway plans to file a counterclaim. The suit, filed in U.S. Superior Court in Los Angeles last month, charges Safeway with conducting “a biased and unfair sale process” to sell Chicago grocer Dominick’s to Supervalu, Minneapolis. Yucaipa claims that Safeway passed over its $350 million bid in favor of a smaller bid, reportedly from Supervalu. Yucaipa sold Dominick’s, a 113-store chain, to Safeway in 1998.Yucaipa wants the court to force Safeway to reopen bidding, pay damages for the cost of failed negotiations and release Yucaipa from its promise to help Safeway negotiate with union workers. Pleasanton, CA-based Safeway announced on July 3 that it had accepted a bid. A Safeway statement calls the allegations “completely without merit.” Safeway says it conducted a fair auction and chose the best bidder based on the advice of its investment bankers.

B&G BUYS ORTEGA B&G Foods, Inc. has acquired the Ortega brand from Nestlé Prepared Foods Co., part of Nestlé USA. Terms of the deal were not disclosed.

CARLSON GAINS LEARNING Carlson Marketing Group, Minneapolis, has purchased Learning Solutions Group, Inc. from Boston-based Dove Consulting. The acquisition expands Carlson’s custom education, corporate learning and performance improvement practice areas. Clients of Learning Solutions Group include Johnson & Johnson, Microsoft and General Mills.

PROCTER & GAMBLE has been given permission by the European Commission to take over German hair care group Wella. The $5.7 billion deal is the largest in P&G’s history, exceeding the $4.95 billion P&G paid for Clairol in 2001, according to news reports.

141 WORLDWIDE TO REMAIN WHOLE

WPP Group plans to keep promotion network 141 Worldwide intact when it buys Cordiant Communications Group. London-based WPP finalized its purchase agreement, paying a total of £266 million, about $400 million, including £256 million (about $385 million) to buy most of Cordiant’s debt. As part of the deal, expected to close Aug. 5, Cordiant stockholders receive £10 million (about $15 million) in WPP stock. U.S. hedge fund Cerberus Capital Management will hold on to £79 million of Cordiant debt (about $158 million); WPP reportedly continues to negotiate with Cerberus. WPP plans to merge Bates advertising offices into WPP-owned offices in each city — J. Walter Thompson and Young & Rubicam in the U.S. and Red Cell in Europe. The firm has no plans to dismantle or rebrand 141, which has 91 offices in 57 countries.

NESTLÉ FINISHES DREYER’S BUY

One day after the Federal Trade Commission finally approved NestlÉ SA’s acquisition of Dreyer’s Grand Ice Cream, the $2.8 billion deal was complete. To appease the FTC, Dreyer’s will likely sell off its Dreamery, Godiva and Whole Fruit brands to CoolBrands International, which will also receive Nestlé’s distribution assets. The FTC blocked the deal in March, fearing the merger would hurt competition and boost prices for premium Nestlé brands. According to the FTC, Dreyer’s, Nestlé, and Unilever’s Ben & Jerry’s brand account for 98% of superpremium ice cream sales.

EBAY BUYS FAIRMARKET

EBay is buying technology firm FairMarket for $4.5 million in cash after a 14-month partnership. The two collaborated on loyalty programs including Liquid Loot for Dr Pepper/Seven Up Cos. (Xtra, May 1) and eBay’s own Anything Points. San Jose, CA-based eBay already had partial ownership of FairMarket, Woburn, MA. The deal is expected to close in the third quarter, pending FairMarket shareholder approval.

INTERPUBLIC SELLS NFO RESEARCH

In an effort to further reduce debt, Interpublic Group plans to sell its NFO research unit to Taylor Nelson Sofres, a provider of marketing research and information services, in a cash and stock deal worth $435 million.

Under the terms of the deal, Taylor Nelson Sofres will pay Interpublic $400 million in cash, $25 million in stock and another $10 million in cash one year after the close of the transaction this summer, according to news reports. The company expects to realize an accounting gain of $100 million in the deal. Interpublic purchased NFO in April 2000 for about $624 million.

CONCESSIONS OPEN DOOR FOR NESTLÉ AND DRYERS

Nestlé SA may be close to finalizing a deal to acquire Dreyers’s Grand Ice Cream, Inc. The Federal Trade Commission dropped major objections to the deal after the two companies agreed to sell off some of their premium ice cream brands and distribution assets to CoolBrands International, Inc. in Ontario, Canada. In March, the FTC moved to block the deal, alleging that the merger would hurt competition and boost ice cream prices for premium Nestlé brands. Last summer, Switzerland-based Nestlé announced it planned to increase its stake in Oakland, CA-based Dreyer’s from 23% to 67% as part of a $2.8 billion deal that would eventually lead to full ownership (August 2002 PROMO).

EQUITY FIRM NETS BUMBLE BEE

New York City-based private equity firm Centre Partners purchased Bumble Bee Seafoods from ConAgra Foods, Omaha. Bumble Bee, which generates $500 million in annual revenues, will retain its San Diego headquarters and look to expand through acquisition. ConAgra bought Bumble Bee in 2000 as part of a $2.9 billion deal with International Home Foods but has been selling off commodity products to focus more closely on packaged foods.

DÉJÀ VU FOR DOMINICK’S?

Safeway Stores may have found a buyer for its beleaguered Dominick’s chain. The Yucaipa Cos. is rumored to be interested in buying back the 113-store Chicago-area chain it sold to Safeway in 1998. Observers outside the company speculate that Yucaipa could bring back Dominick’s former management to revitalize the chain. Neither Safeway nor Los Angeles-based Yucaipa returned calls for comment. Pleasanton, CA-based Safeway put Dominick’s on the block last fall after contentious labor negotiations. Safeway had threatened to close stores if union workers called a strike. The two extended existing terms until July.

WAL-MART UNLOADS DISTRIBUTION UNITS

Wal-Mart Stores Inc. has agreed to sell its grocery distribution unit McLane Co. to Omaha-based Berkshire Hathaway Inc. for $1.5 billion. Wal-Mart says it will also sell Merit Distribution services, a McLane subsidiary, to Phoenix-based Swift Transportation Co., Inc.

USA INTERACTIVE ENTERS LOAN BUSINESS

USA Interactive says it will buy the outstanding capital stock of online loan provider Lending Tree in a stock swap worth $722 million. Lending Tree founder Doug Lebda and president and CEO Tom Reddin will retain their positions.

ALLOY BUYS STUDENT ADVANTAGE DM BUSINESS FOR $15.6 MILLION

Last month, Alloy Inc., New York City, acquired Student Advantage Inc.’s direct subsidiary for about $15.6 million in cash. The subsidiary, OCM (On-Campus Marketing), is a direct marketing business that provides college or university-endorsed products to college students and their parents. Products range from residence hall linens to care packages to diploma frames. With the deal, Alloy expects to expand its on-campus marketing presence and to increase its sponsorship revenues by about $25 million over the next 12 months.

AT PRESS TIME, market research giant Taylor Nelson Sofres has jumped to the front of contenders for a potential acquisition of NFO WorldGroup. The UK-based company, which also owns New York City-based CMR, released a statement confirming press speculation that it is in discussions with NFO parent Interpublic Group. The statement also declared that the asking price is below the $500 million figure being bandied about in the press. Interpublic, which is struggling to reduce debt, put Northwood, OH-based NFO on the block in January. NFO offers market research on packaged goods, automotive and healthcare industries.

LEADDOG BUYS NMG EVENTS
Event management and sports marketing company LeadDog Marketing Group has acquired the Event Marketing Division of sports marketing agency National Media Group, both of New York City. NMG staff will relocate to LeadDog offices and the unit will continue to handle existing business, such as a summer mobile tour for AARP The Magazine and Health Magazine’s annual event at the International Tennis Hall of Fame. Under LeadDog, the unit will also produce a new event this fall for a major publishing company and its advertisers.

CADBURY SCHWEPPES SEALS DEAL
Cadbury Schweppes has completed the acquisition of Adams confectionery business from Pfizer, Inc. for $4.2 billion, plus $450 million for tax benefits. Adams’ four top brands represent over 70% of its sales. Cadbury Schweppes and Adams confectionery businesses in the Americas will be integrated into a new unit, Americas Confectionery. Elsewhere, Adams operations will report into Cadbury Schweppes’ Europe, Middle East and Africa and Asia Pacific regions. Cadbury Schweppes said the transaction allows it access to major new markets, particularly in Latin America.

OCEAN SPRAY NIXES BUYOUT OFFER

Ocean Spray Cranberries Inc. turned down an $800 million acquisition offer from Northland Cranberries. Northland, which posted sales of $102 million in 2002, said the $800 million figure was equal to Ocean Spray’s net juice sales for the 12-month period ending Feb. 28, 2003. (Ocean Spray’s total revenue for 2002 was $1.1 billion.) However, Lakeville-Middleboro, MA-based Ocean Spray released a statement saying that the public offer was meant to “take advantage of the current circumstances,” such as the recent drop in cranberry prices and to cause dissent among Ocean Sprays’ 900-member cooperative of growers-owners. Northland, Wisconsin Rapids, WI, used to be the largest shareholder in Ocean Spray, but left the cooperative in 1993, saying it wasn’t getting enough in return.

FTC CALLS FOR BLOCK OF NESTLE/DREYER’S DEAL

The Federal Trade Commission last month announced it is seeking a preliminary injunction to halt the $2.8 billion merger of Nestlé Holdings Inc., Vevey, Switzerland, and Oakland, CA-based Dreyer’s Grand Ice Cream. The FTC alleges the merger, which boosts Nestlé’s market share to 60 percent, would hurt competition and boost ice cream prices for premium brands such as Nestlé’s Haagen Dazs and Dreyer’s Godiva. Dreyer’s would likely have to give up the Starbucks brand it licenses for the deal to go through.

VALASSIS PURCHASES NCH

Marketing and connective media firm Valassis has acquired NCH Marketing Services, Deerfield, IL, for $60 million. The acquisition was paid for out of Valassis’ existing cash, which totaled $97.2 million on Dec. 31, 2002. NCH President/CEO Brian J. Husselbee and the NCH management team will remain in their current roles at NCH. Under the terms of the transaction, Livoniia, MI-based Valassis purchased the privately held shares of NCH. A private equity firm held 90 percent of the equity of NCH with the remaining shares held by management and other minority shareholders.

24/7 REAL MEDIA DUMPS STAKE IN IPROMOTIONS

24/7 Real Media, New York City, has sold all but a minority interest in iPromotions, Inc. to a group of private investors, including the agency’s employees. iPromotions specializes in interactive media for the $2.5 billion travel advertising segment, including airlines, hotels and destination management organizations. “We decided to divest the operations of our online promotions business,” said David J. Moore, chairman/CEO of 24/7 Real Media. He is focusing the company’s efforts instead on search optimization and ad serving platforms, as well as its core media business. “We will continue to build upon our reputation for excellence in creating advertising and promotional campaigns that generate proven results,” iPromotions CEO Bryan Heathman said in a release.

KRISPY KREME FATTENS UP

In its first line extension beyond its namesake chain, Krispy Kreme Doughnuts, Winston-Salem, NC, says it will acquire Montana Mills Bread Co., Rochester, NY, for $40 million in stock. Montana Mills runs 30 upscale village bread stores in suburban New York, Ohio, Pennsylvania and Connecticut, as well as operating mall kiosks, a catalog and a Web site.

E-CENTIVES TAPS CONSUMERREVIEW.COM

E-centives Inc., Bethesda, MD, bought Consumer Review Inc., Foster City, CA, a provider of consumer product reviews on the Web. ConsumerREVIEW.com will operate as a separate business unit while sharing technology with E-centives such as personalized e-mail and coupon services. ConsumerREVIEW.com includes 11 vertical Web sites such as Mtb REVIEW (a mountain biking site), Audio REVIEW.com, and PhotographyREVIEW.com.

MERGERS AND ACQUISITIONS PLUMMETED IN 2002

After the tremendous buying binge of the 1990s, companies around the world pulled their purse strings tight when it came to mergers and acquisitions in 2002. The value of mergers and acquisitions worldwide fell 26 percent to $1.36 trillion, down from $1.83 trillion in 2001, according to London-based investment banking research group Dealogic. The U.S. took the biggest hit, with the value of M&As sinking 43 percent. European and Asian M&As (excluding Japan) dropped seven percent and two percent, respectively. Pfizer’s $61.4 billion purchase of Pharmacia Corp. in July was the largest deal of 2002.

VAN WAGNER BUYS OUTDOOR UNIT FROM VIACOM

Outdoor ad company Van Wagner Communications purchased the New York City telephone booth ad business from Viacom Inc. The deal was part of Viacom’s obligation to sell business to comply with the U.S. Justice Department consent of Viacom’s Infinity division buying Outdoor Systems for $6.5 billion in 1999. Van Wagner, which has ads in 1,000 booths, will get space in an additional 2,300 phone booths.

UNILEVER SAYS ADIOS TO IBERIA FOODS

Unilever, Greenwich, CT, has sold its Iberia Foods division to Brooklyn Bottling Group. Iberia generates sales of $43 million distributing food and other products to more than 3,000 supermarkets, club stores, and wholesalers on the East Coast. Brands include Choco Listo, geared toward the Hispanic consumers. Brooklyn Bottling distributes Caribbean and Latino foods and beverages to 12,000 stores in the Northeast.

YAHOO ADDS MUSCLE WITH INKTOMI

Yahoo, Sunnyvale, CA, said it will purchase Inktomi, Foster, City, CA, for $235 million and plans to merge the company’s search engine technology with its own services, such as e-mail, shopping and advertising.

DONE DEAL FOR BURGER KING?

At presstime, London-based Diageo seemed confident that its sale of Miami-based Burger King to the private equity consortium — including Texas Pacific Group, Bain Capital, and Goldman Sachs Capital Partners — would go through after all despite the fact that the fast food chain’s largest franchisee, AmeriKing, filed for Chapter 11 in December. The sale looked to be in doubt after the consortium asked to revise terms of the agreement based on Burger King’s flagging performance in recent months (December 2002 PROMO). Burger King responded with a plan to sell its flagship item, the Whopper, for 99 cents to maintain market share and meet performance criteria for the sale.

SAFEWAY TO SELL DOMINICK’S

Safeway Stores, Pleasanton, CA, seeks a buyer for its 113 Dominick’s stores in Chicago after settling a contentious labor dispute in November. Safeway bought Dominick’s in 1998, the same year Albertson’s bought Chicago’s other big supermarket chain, Jewel Foods.

DILLER BUYS ENTERTAINMENT PUBS

USA Interactive, New York City, plans to buy coupon-book publisher Entertainment Publications, Troy, MI, as it expands online commerce under CEO Barry Diller. The reported $370 million deal should close first-quarter 2003 and bump revenues for USA Interactive, which owns travel Web sites Expedia and Hotels.com as well as Ticketmaster, Reuters reports. Entertainment Publications sells about eight million coupon books per year with offers from local restaurants and merchants.

SWEET TOOTH REDUX

Kraft Foods North America, Northfield, IL, sold its Now and Later, Intense Fruit Chews, and Might Bite brands to Farley’s & Sathers, the same candy company that Kraft sold off last year to Greenwich, CT-based investment firm Catterton Partners (April 2002, PROMO).

MICROSOFT BUYS MAP SERVICE

Microsoft, Redmond, WA, agreed to pay $96 million for former competitor Vicinity, Sunnyvale, CA, a company that helps consumers find local merchants. Vicinity provides information on retailers’ nearest locations and hours through the Internet, telephone, and wireless services. Taco Bell, Hilton Hotels, Ace Hardware, and The Gap are all Vicinity clients. Microsoft will fold Vicinity into its MapPoint unit. The deal is expected to close by March 2003.

TUCKER TAKES OVER CARLSON DRADDY

The Tucker Partnership, New York City, purchased promotion shop Carlson Draddy & Associates. The new company is called Tucker Draddy Kane & Partners, with Bill Tucker serving as managing partner and ceo. The newly combined company has billings of $160 million and 55 employees. Clients include GE Corporate and Pennzoil Quaker State.

LAUNCH SNAPS UP WILLIAM A. POTTER INC.

Launch Creative Marketing, Hillside, IL, has purchased creative agency William A. Potter Inc., a specialist in package design, point of sale, and sales collateral materials. The acquisition of Potter will bring clients such as Sanford Corp., Tootsie Roll, and Newell Rubbermaid to the Launch stable, which already includes Keebler Co., Alberto-Culver Co., and Hedstrom Corp.

JUSTICE DEPARTMENT BLOCKS SATELLITE MERGER

The Justice Department has blocked the $21 billion merger of EchoStar with DirectTV parent Hughes Electronics. The government determined the deal would form a monopoly, particularly for rural customers with no options for cable service. EchoStar and Hughes are going to court to fight the decision but with a court date of late February or early March it may not matter — the original merger agreement includes a final deadline clause of Jan. 21 that will enable either company to walk away if the deal is not complete.

OGILVY SNAPS UP BEN MARKETING Ogilvy & Mather North America, New York City, jumps into the promotion game with the purchase of BEN Marketing Group. BEN will retain its name and management team of founder and ceo Chuck Nardizzi, and co-presidents Chris Milhous and Bruce Perlman. The transaction comes as BEN parent Panoramic Communications, New York City, divests assets after a disastrous year in 2001. BEN, however, is flying high with revenues of $16 million (up 75 percent in the last two years) and billings of $60 million. “We’ve been looking into promotion for the last year,” says Ogilvy coo Gary Lee. “And in the last few months we’ve been focused on BEN.” The Stamford, CT-based agency, whose client roster is topped by Coca-Cola, should be a good fit with Ogilvy (which also serves Coca-Cola brands such as Sprite). “We have similar philosophies,” says Nardizzi. “You can’t just buy revenue in this business.”

GLOBALHUE BUYS INNOVASIA GlobalHue, Southfield, MI, purchased Innovasia, an ad agency specializing in marketing to Asian-Americans. Innovasia has estimated billings of $20 million with clients such as Samsung, Union Bank of California, and Wells Fargo. The agency will provide GlobalHue with a West Coast market presence.

AOL-TIME WARNER EYES BRITISH EXPANSION Beleaguered media behemoth AOL-Time Warner, New York City, hasn’t given up on buying British entertainment companies. It may bid for music company EMI, according to ceo Richard Parsons. (A Time Warner acquisition of EMI was shelved in 2000 in order to gain EU approval for the AOL-Time Warner merger.)

PUBLICIS CLOSES ON BCOM3 GROUP At press time, Publicis Groupe, Paris, was expected to complete its acquisition of Bcom3 Group, New York City, on Sept. 20. The purchase will make Publicis the fourth-largest marketing services company in the world, with $4 billion in revenues.

HERSHEY TO BE UNWRAPPED?

Hershey Foods could fetch more than $10 billion in a sale mulled by the Milton Hershey School Trust, which controls 77 percent of the candy giant. The Hershey board of directors rejected proposals from Hershey management to keep the Hershey, PA-based company independent. But the sale is far from a sure thing in a business climate where the stock market continues to slide amid corporate scandals and accounting scrutiny. If the board decides to go with the sale, it would be the largest deal since Kraft Foods bought Nabisco two years ago. Kraft, Nestle SA, PepsiCo, and Cadbury Schweppes could all be eager bidders.

ALLOY KEEPS FEASTING

Youth marketing specialists Alloy Inc., New York City, bought MPM Holding Inc., owners of Santa Barbara, CA-based Market Place Media, a media placement and promotions company specializing in college, multi-cultural, and military programs. The agency — which sold for $48 million in cash — works with clients such as AT&T, UPS, General Motors, and the U.S. Army. Alloy has been on a buying binge over the past year, snapping up 360 Youth, and the high school and college marketing services of Youthstream Media.

AOL TIME WARNER BUYS INTO NBA TV

AOL Time Warner, New York City, took a 10-percent stake in NBA TV for $45 million. NBA TV is the National Basketball Association’s digital cable channel. The purchase originated from a $4.6 billion deal formed in January between the NBA and ESPN, ABC, and AOL Time Warner’s TNT Network. NBA TV is currently available to about 9.5 million digital customers and 2.5 million satellite homes.

ON THE ROAD AGAIN

Kentucky Manufacturing Co., Louisville, KY, bought Trailer Technologies Inc., Walled Lake, MI, a specialist in custom transport, exhibit, and specialty trailers.

ON THE GRILL

At press time, Burger King parent Diageo, London, was in the final stages of considering bids for the chain’s sale. The short list of offers reportedly featured three private equity firms (including Texas Pacific Group, which boasts BK chairman John Dasburg as a member) and Arby’s owner Triarc Companies. Burger King has been on the block since March.

SCOOPS FOR NESTLE

Nestlé SA, Vevey, Switzerland, boosted its stake in Oakland, CA-based Dreyer’s Grand Ice Cream from 23 percent to 67 percent as part of a $2.4 billion deal that will eventually lead to full ownership. The deal puts Nestle on a level playing field in the ice cream category with primary rival Unilever, which owns the Ben & Jerry’s, Good Humor, and Breyers brands. Dreyer’s will remain based in Oakland led by ceo T. Gary Rogers.

COOL RUNNINGS

CoolBrands International, Markham, Ontario, purchased Norwalk, CA-based Fruit-A-Freez, Inc., a manufacturer of frozen fruit bars. The deal includes the company’s distribution system, which works with supermarket chains, club stores, independent grocers, convenience stores, and independent distributors.

LAST CLICK

L90, Inc., Los Angeles, a specialist in direct and online marketing, bought the New York City-based North American operations of struggling online marketer DoubleClick. L90 will establish a new company called MaxWorldwide and shift its headquarters to Manhattan.

SWEATY STUFF

Action Performance Cos., Phoenix, a specialist in licensed motorsports merchandise, bought San Diego-based McArthur Towel and Sports for $4.6 million. A 117-year-old marketer of licensed sports towels and golf products, McArthur will manufacture specialty products using Action’s NASCAR licenses.

LANDS HO

Sears, Roebuck and Co., Hoffman Estates, IL, has taken on new life as an apparel retailer with the $1.9 billion acquisition of Dodgeville, WI-based cataloger Lands’ End. Sears will begin offering a limited number of Lands’ End products in 870 stores this fall, and anticipates a full product rollout by late 2003. Lands’ End will continue to sell through its catalogs and Web site; ceo David Dyer will add responsibility for Sears catalogs and sears.com.

OUT OF A JAM

J.M. Smucker, Orrville, OH, completed its purchase of Cincinnati-based Procter & Gamble’s Jif peanut butter and Crisco oil businesses in an all-stock transaction worth approximately $1 billion. Originally announced last fall (December 2001 PROMO), the deal will swell Smucker’s annual revenues to $1.3 billion and enhance the company’s power in grocery aisles.

HAIR TODAY, GONE TOMORROW

Seven months after completing its $5 billion acquisition of Stamford, CT-based Clairol from Bristol-Myers Squibb Co., Procter & Gamble said it will entertain offers for facial cleanser Sea Breeze, talcum powder Ammens, and hair care products Condition 3-in-1 and Vitapointe. P&G says it will keep the brands if no suitable bid is offered.

ROLLING IN THE DOUGH

Pork producer Smithfield Foods, Smithfield, VA, acquired an 80-percent interest in pizza maker Stefano Foods, Charlotte, NC. The operation, which has annual sales of $22 million, will become part of a new subsidiary called Smithfield Deli Group. Smithfield is also in talks to acquire the meat operations of Farmland Industries, Kansas City, MO.

MEAT TREAT

Investment firm Hicks, Muse, Tate & Furst, agreed to lead a majority acquisition of the meatpacking business of ConAgra Foods for $950 million. ConAgra, Omaha, NE, will continue using the operation as supplier for its pork-based products.

MIX AND MATCH

Coca-Cola Co., Atlanta, reached an agreement with Diageo plc and Pernod Ricard to purchase the Seagram’s Mixers line for an undisclosed amount of cash. The line includes Seagram’s-branded club soda, seltzer, tonic, and ginger ale. Coke already was primary U.S. distributor.

VIVE LA USA

Shareholders of Los Angeles-based USA Networks, Inc. approved the sale of the company’s entertainment group to Vivendi Universal, Paris, for $10.3 billion in stock. Announced earlier this year (February PROMO), the deal will create a new company called Vivendi Universal Entertainment.

DOING THE CONTINENTAL

CSS Stellar, London, parent of PROMO 100 shop GEM Group, added to the fold by acquiring London-based sports and entertainment agency Craigie Taylor International, which will be renamed GEM Europe. The agency will focus on developing promotions around major European events such as the Olympics, the European Football Championships, and the World Cup.

NO BITES FOR FINGERHUT

Federated Department Stores, Minneapolis, ended negotiations to sell its Fingerhut catalog division to a private investor group due to the “difficult economic environment.” Federated hasn’t received any other offers and now will likely shut down the unit. The company says it will sell other catalog subsidiaries including Arizona Mail Order and Popular Club.

HARVEST TIME

1-800-Flowers.com, Westbury, NY, agreed to pluck Lake Forest, IL-based The Popcorn Factory for $4.9 million in stock. The confectionery marketer is expected to provide $30 million in annual revenues.

MILLER TIME?

Philip Morris Cos., New York City, confirmed last month that it is negotiating to sell struggling Miller Brewing Co., Milwaukee, to South African Breweries Ltd. for $5 billion. The deal, however, seemed far from certain. While Miller is the No. 2 beer in the U.S., it has rapidly lost market share to Anheuser-Busch, St. Louis.

FAMILY FEUDED

The long-contended $20-billion merger of Houston-based Compaq Computer Corp. and Hewlett-Packard, Palo Alto, CA, apparently came to a close in April when shareholder majorities from both companies voted in favor of the deal. (A lawsuit filed by H-P scion Walter Hewlett was not expected to change the outcome.)

MORE FISH TO FRY

Louisville, KY-based Tricon Global Restaurants, owners of KFC, Taco Bell, and Pizza Hut, agreed to acquire Long John Silver’s and A&W Restaurants from Yorkshire Global Restaurants, Lexington, KY, for $320 million in cash. Tricon also changed its name to Yum! Brands, Inc.

COUNTING EVERY DROP

Cadbury Schweppes, White Plains, NY, bought juice maker Nantucket Allserve from Ocean Spray Cranberries, Lakeville-Middleboro, MA. The Nantucket Nectars’ juice line joins Snapple, Mistic, and Orangina in Cadbury Schweppes’s juice division.

LOYAL FOLLOWING

Transaction services company Alliance Data Systems, Dallas, acquired Cincinnati-based loyalty shop Frequency Marketing. Richard Barlow, Frequency’s founder, will remain at the helm.

SECRET ADMIRER Merchandise agency Bensussen, Deutsch & Associates, Seattle, acquired Los Angeles-based Secret Identitee, a promotional products supplier for the entertainment industry. The deal helped BDA launch a new sports and entertainment marketing division led by former Secret Identitee head Marc Sirkin.

LOOKING NORTH Milmour Products, Skokie, IL, purchased Incent Innovations, Toronto, which will retain its name and function as a specialized division offering gift-with-purchase premiums, in-pack and on-pack promotions, and mail-in offers for packaged goods companies.

FINGER FLIPPING Federated Department Stores, Cincinnati, struck a preliminary agreement to sell its Fingerhut Companies catalog operation to Business Development Group Acquisitions, Inc., Wayzata, MN. In January, Federated said Fingerhut no longer fit the company’s strategic vision.

SWEET TOOTH FS Acquisition Corp., a unit of Greenwich, CT-based investment firm Catterton Partners, completed its purchase of the Farley & Sathers confectionery business from Kraft Foods, Glenview, IL. The deal includes the Farley and Sathers brand names as well as six distribution facilities.

WHALE OF A DEAL Heaven Hill Distilleries, Bardstown, KY, bought the Whaler’s Rum brand from Mira Loma, CA-based Levecke Corp. The new owners will kick off marketing with an extensive campaign that will feature sampling, local marketing, P-O-P, and viral components. Keller Crescent, Evansville, IN, will handle.

LION FOR SALE

Legendary movie studio Metro-Goldwyn-Mayer put itself on the auction block with an all-stock asking price of $7 billion (the company is currently valued at $5 billion). The Los Angeles-based studio hired Goldman Sachs to talk with potential buyers. MGM offers one of the most attractive balance sheets in Hollywood and has a classic library of 4,100 films, including the James Bond and Rocky series.

HOAGIES TO GO

The majority of shareholders in sandwich chain Blimpie International, Inc., New York City, approved the company’s sale to a private investor group for $25.8 million. Blimpie will be delisted from the American Stock Exchange following the deal’s closing.

FULL STEAM AHEAD

Los Angeles-based P&O Princess Cruises rebuffed a $5 billion takeover bid from Carnival Cruise Lines, Miami, saying it will stay the course on its planned merger with Royal Caribbean Cruises, also Miami (February PROMO). The Princess-Royal Caribbean deal creates a $6 billion giant with 41 ships and 75,000 berths, knocking Carnival from the industry lead.

SHAPING UP

Private investor group ACI Capital Co., Inc., New York City, will purchase embattled weight loss empire Jenny Craig, La Jolla, CA, for $115 million in cash. Founders Sid and Jenny Craig are part of the acquisition group, and current management will remain in place, joined by former Weight Watchers ceo Kent Kreh as chairman.

GREAT WHITE ELEPHANT

Calgary-based Willow Creek Exploration bought Canadian distributor Promotional Products International, Ltd., then assumed the name of its new operation. The company’s stated mission is to consolidate the Canadian promotional products industry through acquisition.

BOTTOMS UP

The Campari Group, Milan, Italy, paid $207.5 million to boost its stake in Skyy Vodka maker Skyy Spirits LLC, San Francisco, from nine percent to 59 percent in a buyout of founder Maurice Kanbar. (Skyy management holds the remaining interest.) Skyy is one of the fastest growing vodka brands in the U.S., with compound annual growth of 19 percent over the last five years.

CHANNEL CROSSING

Vivendi Universal, Paris, is seeking to buy the entertainment division of USA Networks, New York City, in a stock deal valued at $10.3 billion. If the deal goes through, a new company called Vivendi Universal Entertainment will encompass USA’s cable networks, TV production unit, and film company, and provide an additional distribution channel for Vivendi’s film and TV holdings.

ALL HANDS ON DECK

Shareholders of P&O Princess Cruises, Los Angeles, this month will decide whether or not to accept a $4.4 billion acquisition offer from rival Carnival Cruise Lines, Miami, or to complete a merger with Miami neighbor Royal Caribbean Cruises. Carnival threatened a hostile takeover late last year after Princess rejected its original acquisition bid — made in response to the proposed merger with Royal Caribbean.

CLEAR HEADED

Clear Channel Entertainment, New York City, acquired San Antonio-based BBH Exhibits, a specialist in traveling museum exhibits and family-based educational events. The acquisition will become headquarters for Clear Channel’s exhibitions group, which is currently based in Aurora, OH. BBH founder Stacy King will serve as co-president and ceo.

COSMETIC REASONS

Maryland-based IST Corp., a division of cosmetics and fragrance sampling specialist Arcade Marketing, Inc., New York City, acquired Baltimore neighbor and rival Color Prelude. IST serves clients such as Mary Kay and Avon.

SOS FOR FAO

Calabasas, CA-based educational products retailer Right Start, Inc. agreed to acquire $55 million in assets from struggling toy retailer FAO Schwarz, New York City. As part of the deal, which includes 22 of FAO’s 44 stores (including the Manhattan flagship), FAO parent Vendex International NV, Amsterdam, gains a significant interest in Right Start. FAO’s other locations will close.

NO LONGER SUITABLE

London-based Marks & Spencer sold its 160-outlet Brooks Brothers men’s clothing chain to Retail Brand Alliance, Enfield, CT, for $225 million in cash. The deal was a steal, considering Marks & Spencer paid $750 million for the flagging chain three years ago. Retail Brand Alliance also owns women’s chain Casual Corner.

A NATURAL FIT

Raleigh, NC-based R.J. Reynolds Tobacco Holdings beat out Canadian rival Rothmans, Inc. to acquire Santa Fe Natural Tobacco Co., Santa Fe, NM, makers of American Spirit cigarettes. RJR will pay $337.5 million in cash.

RAISING A GENIUS

Walt Disney Co., Burbank, CA, acquired Lone Tree, CO-based Baby Einstein Co., creators of upscale media products, toys, and books designed to expose babies and toddlers to language, art, and science. This fall, Baby Einstein teamed with Disney Publishing and Hasbro, Inc. on a new product line.

FULFILLING PROPOSITIONS

Coupon redemption house International Data, El Paso, TX, merged with Pennsauken, NJ-based fulfillment company Marketing Masters, Inc. The latter’s consumer promotions, assembly, mailing, packaging, warehousing, and distribution services will become part of International Data’s Laborgistics division. Marketing Masters brings such clients as Emerson Electric Co. and Mott’s, Inc. to the International Data fold, which already includes Exxon/Mobil, Winn-Dixie, and Wells Fargo.

IN THE DOUGH

Minneapolis-based General Mills’ $6.1 billion purchase of Pillsbury from Diageo PLC was narrowly given the go-ahead by the FTC in October. Assuming stockholder approval, the combined entities will be the fifth-largest packaged goods company in the world, with sales of $13 billion.

BANANA SPLIT

Meanwhile, Nestlé SA, Vevey, Switzerland, is interested in buying out Pillsbury’s stake in the Haagen-Dazs ice cream business, which the two jointly own. Nestlé says it has the option to take over the operation should Pillsbury’s ownership change. The proposed sale would run about $650 million and give Nestlé a needed edge in its ongoing battle with Unilever in the U.S. ice cream category.

BK GOES SHOPPING

Miami-based Burger King Corp. acquired 30 restaurants in Florida from Nath Franchise Group, Orlando. The deal, which includes 19 restaurants in the Orlando/Daytona Beach area and 11 in greater Miami, is one of the largest transactions in BK history. Nath remains one of the largest franchisees in the Burger King system with 102 restaurants. Burger King itself now owns 569 restaurants, including 201 in Florida.

SQUEEZING COMPETITION

Coca-Cola Co., Atlanta, acquired juice maker Odwalla, Half Moon Bay, CA, for $181 million. The company will retain its current management and become part of Coke’s Minute Maid division. Odwalla sold $98 million worth of juice blends, smoothies, and health drinks in the first nine months of 2001.

COMING CLEAN

Prestige Brands International, Bonita Springs, FL, will purchase Cincinnati-based Procter & Gamble’s Comet cleanser brand. Controlled by DB Capital Partners, Prestige acquired P&G’s Prell shampoo in 1999 and its Chloraseptic throat spray in 2000. P&G will continue to market Comet at retail in Central and Eastern Europe and the Professional Line Comet brand in North America.

HAS BEENZ AGAIN

Carlson Marketing Group, Minneapolis, agreed to purchase the assets of New York City-based Beenz.com, the now-defunct online currency provider (October PROMO). The acquisition covers the Beenz brand name, hardware and software assets, and all intellectual properties including patents.

DOUBLE TEAMING

Online advertising firm DoubleClick, Inc., New York City, acquired the technology assets of marketing and media shop L90, Inc., Los Angeles. The sale lets L90 focus on its media and direct-marketing businesses. DoubleClick, which had sales of $506 million in 2000, is also reportedly in talks to acquire rival Real Media, New York City.

ONE FOR DANONE

Paris-based Groupe Danone, owner of the Dannon yogurt brand, agreed to purchase an initial 40-percent interest in Stonyfield Farm, along with an opportunity to purchase a majority holding in 2004. Londonderry, NH-based Stonyfield is the No. 1 brand in the natural yogurt market, with annual sales of $85 million. Chairman and ceo Gary Hirshberg will continue to run the company.

A WHEEL DEAL

Schwinn/GT Corp., Boulder, CO, sold its business to Pacific Cycle LLC and Direct Focus, Inc. for $151 million in a bankruptcy court-guided auction. Madison, WI-based Pacific Cycle will control Schwinn’s bicycle business while Vancouver, WA-based Direct Focus gains hold of its fitness equipment line. The new owners reportedly plan to move the No. 2 bike brand out of specialty stores and into the mass-market channel.

JUICING UP MOTT’S

Cadbury Schweppes plc, London, agreed to acquire the RealLemon and RealLime baking and mixer products from Eagle Family Foods, Inc., Tarrytown, NY, for $128 million. The products will be folded into Cadbury’s Stamford, CT-based Mott’s, Inc. subsidiary.

INTERBREW ADDS BECK’S

Interbrew, Leven, Belgium, parent of the Bass Ale and Labatt brands, will purchase Bremen, Germany-based Brauerei Beck & Co., manufacturer of Beck’s and St. Pauli Girl, for $1.58 billion.

OVERSEAS EQUITY

Equity Marketing, Los Angeles, purchased London-based marketing services shop Logistix Ltd. for $12.1 million. The acquisition provides entry into Europe through a $20 million business that specializes in kids and families and works with such brands as Kellogg, Coca-Cola, and Procter & Gamble.

DATA DRIVE

Business communications provider Relizon Co., Dayton, OH, acquired database marketer Epsilon, Burlington, MA. CRM-focused Epsilon generated $120 million in revenues in 2000 from such clients as Hilton Hotels and the National Multiple Sclerosis Society.

HOME MAKERS

Promotional products supplier WinCraft, Winona, MN, acquired Elgin, IL-based P&K Products, makers of home décor items licensed from professional sports, colleges, NASCAR drivers, and entertainment properties. WinCraft has long-standing licenses with the NFL, NHL, NBA, and MLB.

GOOD SIGNS

Custom designer GM Nameplate, Seattle, completed its acquisition of SignRite Design Inc., Surrey, British Columbia. The deal broadens GM’s design offerings to include retail, event, fleet, and outdoor products.

THIRST QUENCHING

PepsiCo., Purchase, NY, got the green light from the Federal Trade Commission to complete its $13.4 billion acquisition of Quaker Oats, Chicago. The FTC was leery of giving approval because it feared Pepsi’s ownership of Gatorade would create an unfair marketplace; in response, Pepsi agreed to sell its All-Sport brand.

NEW WORLD ORDER

New World Pasta, Harrisburg, PA, purchased Columbus, OH-based Borden Food Corp.’s pasta brands and production facilities in the U.S., Canada, and Italy for $43.1 million. The acquisition swells New World’s revenues to more than $500 million, compared with $210 million last year. New World gains 11 brands including Creamette and Prince. (H.J. Heinz bought Borden’s sauce and soup brands earlier this year.)

IN THE BAG

Clear Channel Communications, Inc. unit SFX Golf, Washington, DC, bought Minneapolis-based golf management shop Signature Sports Group, to add pros such as Tom Lehman and Larry Mize to a representation stable already boasting Greg Norman, John Daly, and Roger Maltbie.

NUMBER CRUNCHING

Leemis Marketing, Chicago, added to its capabilities by acquiring Framingham, MA-based Promotion Technology Research, Inc., which compiles pricing and promotional data on consumer electronics, computers, peripherals, and software. Clients include Microsoft, Hewlett-Packard, and Sony. Leemis provides research for the grocery, drug, hardware, insurance, and foodservice markets.

MORE NUMBER CRUNCHING

Elsewhere in research, New York City-based NOP World acquired Gotham’s Roper Starch Worldwide, merging it with consumer unit Audits & Surveys Worldwide to form RoperASW. And Harris Interactive, New York City, bought Total Research Corp., Princeton, NJ.

DRUG CONNECTION

Bristol-Myers Squibb Co., New York City, agreed to buy DuPont Pharmaceuticals, Wilmington, DE, for $7.8 billion. The sale is expected to close in the fourth quarter. DuPont generated $1.5 billion in sales in 2000 through its stable of experimental drugs for HIV treatment, blood clots, rheumatoid arthritis, solid cancers, and obesity. (DuPont retains hypertension drug Cozaar.) Bristol-Myers is the world’s fifth-largest drug maker with $13.3 billion in 2000 sales.

CALLING YOO-HOO

Cadbury Schweppes plc, London, was near a deal at press time to purchase Paris-based Pernod Ricard’s soft-drink brands and businesses in North America, Europe, and Australia for $593 million. The transaction would include the Orangina, Yoo-Hoo, Pampryl, and Champomy brands. Cadbury has been wooing Pernod since last fall.

EATING MINTS

Wm. Wrigley Jr. Co., Chicago, acquired Velamints sugar-free breath mints from Ragold, Inc., Chicago. The brand will become part of Wrigley’s Amurol Confections subsidiary, which also markets Bubble Tape, Everest, and Big League Chew.

MY ENEMY, MY FRIEND

Former rivals and free Internet access pioneers NetZero, Westlake Village, CA, and Juno Online Services, New York City, merged in a $71 million stock swap to create the second-largest ISP in the U.S. The new company is called United Online, Inc. and boasts seven million subscribers, a base larger than that of the Microsoft Network (five million). The new company is headquartered in Westlake Village with NetZero ceo Mark Goldston in charge.

ABSOLUT WALL STREET

Jim Beam Brands Worldwide, Lincolnshire, IL, closed a $645 million deal with Stockholm-based Vin & Sprit, maker of Absolut vodka, to jointly distribute what will be the second-highest volume of spirits and wine in the U.S. (The companies separately sold 20 million cases in 2000.) The agreement encompasses Jim Beam brands such as DeKuyper, Knob Creek, and Geyser Peak, and Vin & Sprit brands Canyon Road Wines, Plymouth gin, and Aalborh Akvavit.

HA-LO SELLS TWO

Ha-Lo Industries, Niles, IL, sold its Market USA teleservices division to Paris-based SR Teleperformance for $32.5 million and its Lipson Alport Glass & Associates brand identity unit to a management team for $25 million in cash and future considerations of up to $1.6 million. LAGA principles Stevan Lipson, Howard Alport, and Allen Glass received financing from Chicago-based investment firm Thomas Cressey Equity Partners for the latter purchase. The sales leave promo agency Upshot as Ha-Lo’s lone marketing services business.

GOING CORPORATE

Cannon Equipment Co., Rosemount, MN, a manufacturer of wire and metal fixtures, purchased a controlling interest in College Point, NY-based retail designer Display Technologies LLC. Display president Richard Jay retains minority ownership and will oversee day-to-day operations.

PERSONAL POINTS

New Ventures, the Internet division of United Airlines, Chicago, will acquire San Francisco-based online direct marketer MyPoints.com for $112.5 million. MyPoints operates loyalty programs in which members earn rewards by shopping online, reading e-mail, and visiting Web sites. Its flagship service boasts 16 million members, although company revenues dropped 37 percent to $10 million in the first quarter of 2001.

SOUP’S ON

Campbell Soup Co., Camden, NJ, wrapped up its $900 million purchase of several European soup and sauce businesses from Unilever, New York City. The acquired businesses post combined annual sales of $400 million and include three dry-soup brands: the U.K.’s Batchelors, France’s Royco, and Germany’s Heisse Tasse.

A DIFFERENT PLACE

The Schroder Ventures US Fund, New York City, a private-equity firm focused on media and communications, agreed to acquire Market Place Media, Santa Barbara, CA, for $28 million. Market Place is a media and promotion agency specializing in the minority, college, seniors, and military markets. Total revenues were $48 million in 2000.

NIXED NUTS

H.J. Heinz Co., Pittsburgh, PA, and Beech-Nut, St. Louis, halted their proposed $185 million merger in April after an appeals court temporarily blocked the deal pending review by the Federal Trade Commission. The merger would have left just two major players in the U.S. baby food market, which gave the FTC some trepidation. The merger was first announced last fall, when an initial FTC request to block it was denied by a lower court. Although the deal could go through at a later date, officials at the companies suggest that the delays leave little reason to pursue it.

ADDING FLAVOR

Hormel Foods, Austin, MN, completed its acquisition of the assets of nutritional products manufacturer Diamond Crystal Brands, Savannah, GA. Hormel will merge the company into its Hormel HealthLabs subsidiary, which markets food for people with special dietary needs to hospitals and other healthcare facilities.

SUPER XL

Large-format graphics manufacturer XL Images, Seattle, bought Sunnyvale, CA-based digital print-house SuperGraphics, Inc. The combined company will use the SuperGraphics name and retain operations in both locations. Clients include Coca-Cola, Walt Disney Co., General Motors, Fox Broadcasting, Apple Computer, and Nike.

PHOTO FINISH

Eastman Kodak, Rochester, NY, bought its way into the online photography market with the purchase of Ofoto, Emeryville, CA. Internet-only Ofoto launched in 1999 and specializes in digital-photo finishing. Earlier this year, the company received $41 million in second-round financing from a group of investors including Apple Computer and Hewlett-Packard.

BOTTLES UP

Coca-Cola Enterprises, Atlanta, signed a letter of intent to acquire Herb Coca-Cola, the third largest Coca-Cola bottler in the U.S., for approximately $1.4 billion. Milwaukee-based Herb Coca-Cola runs plants in six states including New York and Illinois. With the buy, Coca-Cola Enterprises says it will sell 80 percent of Coke’s North American volume.

SAN FRANCISCO TREAT

In an effort to elbow its way further into the Internet arena, Boston-based Hill, Holiday, Connors, Cosmopulos signed a letter of intent to purchase SF Interactive, a San Francisco shop specializing in digital work and customer relationship management.

NIKE GOES CLUBBING

Nike Golf, Beaverton, OR, agreed in principle to acquire the assets of Impact Golf Technologies, Fort Worth, TX. The company, headed by golf club developer Tom Stites, will help Nike create its own prototype clubs for testing on the PGA Tour in 2001. The Impact Golf Technologies staff will remain in Fort Worth. A launch timeline has not been set.

OUT-OF-BOX, INTO POCKET

Columbus, OH-based marketing firm The Axis Group bought e-commerce design firm Out of the Box, Inc., also Columbus. With the acquisition, Axis Group expects to reach $50 million in capitalized billings in 2001. Out of the Box founder Seth Quillin will remain with the company as executive vp-creative services.

BARNEY GOES BRITISH

London-based Hit Entertainment will plunk down $275 million in cash and stock to acquire Richardson, TX-based Lyrick Studios, the outfit behind the successful Barney & Friends franchise. A production company in the same vein as Lyrick, Hit distributed the Barney television show in England during the mid-1990s. The company will use Barney as a springboard into U.S. retail channels for its own kids properties, which include Bob the Builder, Kipper, and Angelina Ballerina. Lyrick has strong ties with such major chains as Wal-Mart and Kmart. The Lyrick’s book publishing business was sold to New York City-based children’s publisher Scholastic, Inc.

MADE IN THE SHADES

Italian eyewear manufacturer Luxoticca Group agreed to acquire Coral Gables, FL-based retail chain Sunglass Hut and its 1,962 outlets for $462 million. Luxoticca already owns prescription chain Lenscrafters.

PICKLE OF A DEAL

H.J. Heinz Co., Pittsburgh, PA, acquired the Vlasic pickle and Open Pit barbecue brands for $195 million from Cherry Hill, NJ-based Vlasic International, which declared bankruptcy shortly before the deal was announced. Vlasic, which has struggled to pay down debt after spinning off from Campbell Soup Co. three years ago, will also sell its Swanson frozen-food brand.

BUY BUY

Best Buy Co., Eden Prairie, MN, closed its $425 million purchase of Minnetonka, MN-based Musicland Stores Corp., parent company of the Sam Goody, Media Play, Suncoast, and On Cue retail chains. Best Buy senior vp Kevin Freeland was named Musicland president. The company assumed $260 million in debt as part of the acquisition.

CONAGRA HEADS NORTH

ConAgra Foods, Omaha, NE, acquired Artel Inc., Boisbriand, Quebec, a manufacturer of frozen pizzas and corn dogs. John Geminara will continue to lead Artel as president.

SOUTH OF THE BORDER

DraftWorldwide, Chicago, extended its reach in South America by purchasing Creactiva, an integrated marketing agency based in Santiago, Chile. The agency, a past winner of PROMO’S World PRO Awards of Excellence, will add DraftWorldwide to its name.

CONSOLIDATION IN CHEESELAND

Milwaukee-based Kubin-Nicholson Corp., a large format printer, signed an agreement to acquire the Milwaukee display division of The NorthStar Print Group. The two companies will consolidate facilities.

PUFF PIECES

Minneapolis-based General Mills, reached an agreement with International Multifoods, Minnetonka, MN, to acquire a variety of businesses including Pillsbury and General Mills dessert and baking products, Hungry Jack potato mix and breakfast SKUs, and the Robin Hood baking line in the U.S. in a $305 million deal that should pave the way for FTC approval The Mills’s merger with Pillsbury.

ROAD SHOWSVenue operator/event promoter SFX Entertainment, Inc., New York City, willacquire 50 percent of A.H. Enterprises Inc., a leading urban musicpromoter. A.H. founder Al Haymon, who has presented national tours for suchstars as Whitney Houston, Janet Jackson, MC Hammer, and Boyz II Men, willremain with the company.

PERFECT REMEDYDrug retail chain CVS Corp., Woonsocket, RI, acquired Soma.com, Seattle,WA, for $30 million in a bid to consolidate its Web presence. In January,Soma.com became the first Internet company to launch an online pharmacysite, and claims to be the only online drugstore with a fully automated,state-of-the-art fulfillment center. Under terms of the deal, CVS willprovide Soma.com with access to its marketing and advertising programs andextensive vendor relationships.

OMNIVOREGlobal advertising giant Omnicom Group, New York City, is acquiring DirectPartners, a Santa Monica, CA-based direct marketing agency. Terms of thedeal were not disclosed. Five-year-old Direct Partners has estimatedrevenues of $40 million and a client list that includes DirectTV.

GETTING DIRECTHarte-Hanks Inc., San Antonio, TX, acquired Direct Marketing Associates,Inc., Baltimore. Terms were not disclosed. Established in 1978, DMA employsapproximately 400 people and provides a full range of direct-marketingservices to companies in the financial services, publishing, and retailindustries. o