ADX: TSX
TORONTO, July 4 /CNW/ - Advantex Marketing International Inc. (TSX:ADX)
announced today that it has completed the sale of its Samplex Division
("Samplex") by way of asset sale, for approximately $3,000,000 subject to
final adjustment. Samplex was purchased by a newly formed company (the
"Purchaser") headed by Todd Blair, the former General Manager of Samplex.
Under the terms of the agreement, the Purchaser is acquiring
substantially all of the assets of Samplex including accounts receivable and
inventory, and is assuming certain liabilities of Samplex including accounts
payable and accrued liabilities.
"The completion of this transaction is an important step for the future
development of both Advantex and Samplex," said G. Randall Munger, Chairman
and Chief Executive Officer of Advantex. "Separating the two businesses
enables each to become more focussed and grow in its own right. As founder of
Samplex, I am proud of its legacy and look forward to its continued success
under Todd Blair's leadership. I would like to take this opportunity to
publicly thank all of the Samplex staff for their hard work and contribution
over the years and wish them the very best with their new company."
"Samplex is an established leader in the paid distribution of product
samples, a tribute to the tremendous effort put forth by the Samplex team over
the years," said Todd Blair, President, Samplex Marketing Solutions
Corporation. "Over the past twelve months, we have implemented radical process
improvement measures, culminating in a redefinition of our value proposition.
We are emerging on our own in a strong strategic position, with a singular
line of business focus, allowing for increased customer service, penetration
and growth. I would like to thank Randall Munger and Allison Smith for their
guidance and support during our time together and wish them continued success
with Advantex."
Selling Samplex is the first step in the strategic plan to enhance
Advantex's leadership role in the loyalty marketing sector. Advantex
Management and Board of Directors are evaluating a number of strategic
initiatives designed to deliver improved value for shareholders, strategic
partners, employees and all other stakeholders.
Advantex Loyalty Update
Plans are in place for Advantex to introduce a Merchant Funding Program,
expanding the market for the Company's products and services among small to
mid-sized merchants. The Merchant Funding Program is a source of working
capital for merchants in connection with the Company's comprehensive customer
loyalty marketing program. Under the Merchant Funding Program, participating
merchants receive cash advances based on future credit card sales. The
Merchant Funding Program improves gross margins for Advantex when combined
with its loyalty marketing programs.
Advantex's Online Shopping Mall business is expected to grow as customer
enrolment and shopping volumes climb and new malls are added. The marketing
audience for the online shopping malls currently consists of approximately
20 million active frequent flyer members, and over 250 participating national
brand and boutique e-retailers. Continued improvements in fee rates earned and
increased consumer purchasing are expected.
A new Online Shopping Mall platform developed over the past year will
increase the Company's speed to market for new customized mall programs and
provides greater flexibility in creating and managing special promotions, both
of which provide the Company with important competitive advantages.
About Advantex Marketing International Inc.
Advantex Marketing International Inc. is a leading loyalty marketing
company, specializing in merchant-based customer loyalty and rewards programs.
Advantex programs build new and repeat business for participating merchants
from the most desirable customers of leading North American companies. The
Company offers a comprehensive range of turn-key marketing services,
including: strategic planning; program design, development and execution;
multi-media communications; Internet and database services; data capture and
award processing interfaces; analytics and reporting; creative design and
production; and customer service. Advantex loyalty partners include CIBC,
United Mileage Plus, Delta Air Lines, The New York Times, Alaska Airlines,
US Airways, and other major North American corporations, as well as a growing
list of restaurants, retailers, golf courses, small inns and resorts. Advantex
is a public company, traded on the Toronto Stock Exchange under the symbol
"ADX". For additional information on Advantex, please visit www.advantex.com.
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