December 15, 1998 08:23
Fingerhut Announces Third Major Catalog Acquisition
MINNEAPOLIS--(BUSINESS WIRE)--Dec. 15, 1998--
Purchase of Cataloger Bedford Fair Expands Database and Market Penetration
Fingerhut Companies, Inc. (NYSE: FHT), today announced that it has entered into a definitive agreement to acquire Bedford Fair Industries, Inc., a cataloger of women's apparel with annual revenues in excess of $100 million. Bedford Fair is the third major catalog purchase Fingerhut has made during the last half of 1998. Through acquisition, Fingerhut has added $400 million in revenue and two million customers. Recent Internet investments provide an additional two million customers, enhancing Fingerhut's position as one of the nation's largest direct marketers and online retailers.
According to Fingerhut Chairman and Chief Executive Officer Ted Deikel, the latest acquisition underscores Fingerhut's strategy to seize opportunities in the consolidating direct marketing environment.
"The industry is undergoing rapid change and Fingerhut is a major consolidator," said Deikel. "We have the scale and skill to grow smaller companies and at the same time enhance Fingerhut's profitability by leveraging our expertise in credit and database modeling, our state-of-the-art infrastructure, and cross-selling opportunities."
Said Fingerhut President Will Lansing: "The acquisition brings Fingerhut one million additional customers, extends our reach into the moderate-income market, and provides opportunity for marketing, operating and purchasing synergies with Arizona Mail Order, Fingerhut's profitable apparel franchise."
Bedford Fair will operate as a freestanding company reporting up through Arizona Mail Order, Fingerhut's wholly owned subsidiary.
Bedford Fair filed for reorganization under Chapter 11 in September 1997. Fingerhut's purchase, which was approved by the U.S. Bankruptcy Court on Dec. 11, 1998, is subject to compliance with Hart Scott
Rodino, and is expected to close in early January 1999.
In December, Fingerhut acquired equity interests in MountainZone.com and FreeShop.com, two leading Internet companies. In July, the company acquired an equity interest in Internet retailer PC Flowers and
Gifts. Fingerhut provides infrastructure support for the growing electronic commerce activities of these three Internet companies. In August, Fingerhut purchased cataloger Arizona Mail Order, and in November the company acquired Popular Club Plan, a membership-based cataloger of general merchandise.
Bedford Fair markets through two catalog brands: Bedford Fair Lifestyles and Willow Ridge. Bedford Fair has headquarters in Greenwich, Conn., and distribution facilities in Wilmington, N.C. The company employs 500 people.
Fingerhut Companies, Inc. is a leading database marketing company selling a broad range of products and services through catalogs, direct marketing, and the Internet. The company also owns Popular Club, a membership-based cataloger of general merchandise, Arizona Mail Order, a catalog apparel company, and Figi's, a food and gift catalog company. Fingerhut owns approximately 20 percent of PC Flowers & Gifts, a leading on-line provider of flowers, gift baskets and gourmet food and approximately 20 percent of MountainZone.com. Based in Minnetonka, Minn., the company and its subsidiaries employ approximately 9,000 people. Fingerhut can be found on the Internet at www.fingerhut.com, www.andysgarage.com, www.thehut.com, www.figis.com, www.pcflowers.com, www.mountainzone.com, www.skiresorts.com,
and www.freeshop.com.
CONTACT: Lynda Nordeen
Director, Corporate Communications
Fingerhut Companies, Inc.
(612) 936-5015
lynda.nordeen@fingerhut.com
or
Gerald Knight
Executive Vice President, CFO
(612) 936-5507
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