Catalina Considers Takeover Bid
Catalina Marketing Corp. is considering a takeover bid from ValueAct Capital Master Fund after spurning a similar offer in December.
ValueAct submitted its unsolicted bid on Tuesday Feb. 20 to buy all outstanding shares of Catalina. The offer is led by ValueAct’s co-founder and principal owner, Jeffrey Ubben, who has been on Catalina’s board of directors for nine months.
Catalina said its board of directors has formed a committee to consider the offer, but gave no timeframe for its decision. In December, the company hired Goldman Sachs & Co. for advice on an earlier takeover offer from an undisclosed suitor; Catalina ended up declining the offer, but did authorize Goldman Sachs to talk with other potential investors to gauge their interest in buying Catalina.
Catalina pioneered targeted in-store marketing with Checkout Coupons and other programs that trigger promotional offers based on a shopper’s purchase history.
The company reported sales of $341 million for the nine months ended Dec. 31, up nearly 17% from the same period in 2005. CEO Dick Buell cited strong performances in Catalina’s Health Resources division and Catalina Marketing International. Sales at flagship Catalina Marketing Services were up nearly 14% to $201 million, according to the St. Petersburg, FL-based company.
Buell also credited the growth to Catalina’s expansion into Walgreens and Kmart stores; its transition to color coupons, with 100,000 color printers now in supermarkets nationally; and international expansion.
