Daskin: FYI...Some Insights on Fingerhut...
<<Federated Buys Fingerhut For $1.7 Billion
2/11/99 Media Central -- Catalog Age Weekly
By Shannon Oberndorf and Mark Del Franco
Cincinnati, OH-On Feb. 11, Federated Department Stores, the $15.8 billion parent company of the Bloomingdale's By Mail and Macy's By Mail catalogs, acquired Fingerhut, a low-end general merchandise direct marketer and financial services company for $1.7 billion. Fingerhut will operate out of its Minneapolis-based headquarters as a wholly owned subsidiary of Federated. "This acquisition isn't about consolidation or saving money," says Lynda Nordeen, spokeswoman for Fingerhut. "It's about growth." Fingerhut shareholders will receive $25 per share in cash. On Feb. 10, Fingerhut stock closed at 18-13/16 but jumped 30% to 24-1/2 after the announcement on Feb. 11.
Although Federated has operated a direct marketing division for more than a decade with Bloomingdale's By Mail, and last year launched a Macy's By Mail catalog, it was Fingerhut's catalog infrastructure and Internet order fulfillment system, as well as its database management skills, that enticed Federated to acquire the $2 billion direct marketer. "We could have continued to build upon our existing infrastructure, but by acquiring a company equipped with those capabilities, we're able to grow much faster," says Federated spokesman Jim Sluzewski. Plus, "Fingerhut's ability to conduct database functions such as relationship marketing is light years ahead of what we're doing."
Aside from mailing the self-titled catalog, Fingerhut also mails food and gift book Figi's, apparel titles Arizona Mail Order and Bedford Fair, both acquired in 1998, and Popular Club, a membership-based general merchandise catalog. In addition to its own Websites, Fingerhut also owns minority interests in four Internet companies-PC Flowers & Gifts, The Zone Network, which is the parent company of mountainzone.com, FreeShop.Com, an online provider of free merchandise and links to other e-commerce sites, and Roxy Systems, an Internet marketer of digital communications and entertainment systems.
"The acquisition doesn't surprise me because Fingerhut has been a strong acquisition target for some time now," says Robert Evans, research director at Minneapolis-based investment firm Craig-Hallum Capital Group. "Fingerhut has been heavily investing in the Internet, and Federated essentially bought that investment. Federated probably decided it was better to make the deal now rather than pay more later.">>
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Why is it "bullish" to have Fingerhut's CEO on NETP's board?
Daskin: Consider the NETP press release carefully...Fingerhut's new CEO (Mr. Lansing) has extensive management experience and should add a valuable new dimension to the board, IMO...Check out his background:
<<Wednesday June 2, 12:15 pm Eastern Time
Company Press Release
SOURCE: Net Perceptions, Inc.
Will Lansing Joins Net Perceptions, Inc. Board of Directors; Fingerhut's Internet Czar Brings New Dimension to Board
MINNEAPOLIS, June 2 /PRNewswire/ -- William Lansing, Internet visionary and CEO of Fingerhut Companies, Inc., has joined Net Perceptions, Inc. (Nasdaq: NETP - news) as a director, effective May 28, 1999.
Lansing was named president and CEO of Fingerhut last month after just one year with the company as president. He has been widely credited with orchestrating Fingerhut's recent $1.7 billion acquisition by Federated Department Stores, and now oversees Federated Direct's operations which include Macy's By Mail and Macys.Com. In addition to his Internet leadership at Fingerhut, Lansing brings a broad base of business strategy, operational and management experience to the Net Perceptions' Board.
''I am delighted that Will has agreed to join the Net Perceptions' Board,'' said Steven Snyder, president and CEO of Net Perceptions. ''Will brings an amazing blend of strategic and operational expertise to our Board, as well as a deep understanding of Internet technology and direct marketing. Will's unique perspective will be invaluable to Net Perceptions as we continue to create real-time personalization solutions that enable Internet retailers to reach customers at multiple touch points. I'm confident that Will's involvement as a director will help us meet and exceed our growth objectives,'' Snyder continued.
Ann Winblad, a partner at the venture capital firm Hummer Winblad and a board member of Net Perceptions said, ''Will is a business superstar. He is an astute Internet strategist and visionary who has had a profound and positive impact on the companies in which he has played a leadership role. His stellar reputation is well-deserved and we are delighted to have him join the Board.''
Lansing began his career in 1984 as a lawyer at Davis, Polk & Wardwell, a Wall Street firm where he practiced securities and mergers & acquisitions law. In 1986, Lansing joined the management-consulting firm of McKinsey & Company, where he focused on high technology companies. He was later named a partner and was a leader of the firm's Internet practice. After nine years at McKinsey, Lansing joined Prodigy Services Company, a joint venture of Sears and IBM Corporation. At Prodigy, Lansing was responsible for the highly successful launch of Prodigy's Internet Service and subsequently led the management buyout of Prodigy that took the company private. In 1996, Lansing joined General Electric (GE) Corporation as vice president for business development and reported directly to CEO Jack Welch.>>
I hope this info. helps.
Best Regards,
Scott |
