Marketing Services Group, Inc. an integrated marketing and Internet services industry leader, is entertaining purchase offers for a majority interest in its Metro Fulfillment, Inc. (MFI) subsidiary.
“Traditionally, MSGI subsidiaries, while faced with significant seasonal variability, have produced dependable revenues and income from operations, ” MSGI’s chairman and CEO Jeremy Barbera in a statement.
“While it is commonplace for a new business to take at least one year to break even, the accumulated losses from MFI [which was formed in May 1998] have become too significant. MFI had an adverse affect on the September 1998 quarter, and we expect it to have a similar impact on the December 1998 quarter, which will be reported this week,” Barbera continued.
“However, the strategic rationale for owning a business in this service line remains valid, which is why the company plans to maintain a minority position in MFI.”
“By maintaining such interest, MSGI could continue to leverage client opportunities in the fulfillment business without the risk of further net income erosion. We anticipate completing this transaction well in advance of the close of our March 1999 quarter. Our future business development and M&A activity will be focused on the direct marketing and Internet marketing sectors.”
Marketing Services Group, Inc. (www.msginet.com) provides direct marketing and database marketing, telemarketing and telefundraising, media planning and buying, interactive fulfillment, Web development, online consulting and e-commerce.
