The unit was sold to a new company formed by LAGA executives Stevan Lipson, Howard Alport and Allan Glass and private equity investment firm Thoma Cressey Equity Partners for $25 million in cash.
The deal follows the sale earlier this month of Niles, Ill.-based Halo's teleservices unit, Market USA, Des Plaines, Ill., to Paris-based relationship marketing company SR.Teleperformance for $32.5 million.
The sales are in line with Halo's divestiture strategy, announced in February, which aimed to sell off the two marketing services divisions by the end of the second quarter in an effort to recover from a fincancially troubling 2000 and focus on its core promotional products division, Halo Branded Solutions.
Halo, which reported net losses of $49.8 million in 2000 on $714.8 million revenue, compared with 1999 net losses of $13.5 million on revenue of $650.4 million, will use the proceeds from the sales to pay off debt.
Halo has no plans at this time to sell its third marketing services shop, Upshot, Chicago. -- Cara Beardi
Copyright May 2001, Crain Communications Inc.