Promotional products distributor Ha-Lo Industries, Niles, IL, named a new ceo and finally confirmed its intention to sell promo agency Upshot — almost — while announcing fiscal results for 2000.
Ha-Lo tapped Marc Simon, a lawyer and former chief financial officer who most recently served as vp-operations for APAC Customer Services, to head up the company, which posted a 10-percent increase in sales to $714.8 million but a net loss of $49.8 million last year. Simon was Ha-Lo’s corporate counsel and a company director in the early 1990s.
He succeeds John Kelley, co-founder of Upshot, who ascended to the president-ceo post in November 1999. Ha-Lo acquired Upshot in 1998, but has been in discussions to sell the agency since last fall (November 1999 PROMO).
Although it previously denied its plan to sell Ha-Lo, the company said in its year-end financial release that it is “in negotiations for the possible sale of one or more of its marketing services units,” which include Upshot, Lipson Alport Glass, Ha-Lo Sports, Market USA, and Events by Ha-Lo. The division posted a 24-percent increase in sales to $195.4 million and a 4.2 rise in gross profit in 2000. “Slowed performance” at Upshot contributed to Ha-Lo’s net loss in the fourth quarter, the release said.
Kelley is expected to stay with Upshot when a deal is completed. Ha-Lo would say only that he will “continue to play a leadership role” with the company.
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