Moore Corporation Sells CRM Services Provider

TORONTO—Moore Corporation, a provider of printed business communication products with annual sales of $2.3 billion, agreed to sell the assets of its Phoenix Group division to Minacs Worldwide Inc., Markham, Ontario, which provides customer relationship management (CRM) services. Terms of the transaction, to be completed this quarter, were not disclosed.

Based in Farmington Hills, Mich., Phoenix Group is a provider of integrated marketing and CRM solutions that bills annual sales of $73 million and employs more than 1,000 people. When combined, the businesses are forecast to have revenues approaching $110 million in 2001.

Commenting on the sale, Robert G. Burton, Moore's president and chief executive, says, "Phoenix is a profitable niche business; however, the business does not fit into our announced strategy of focusing our full attention and management resources on growing our print-related assets, cross-selling our product offerings, and leveraging synergies among our platform. Minacs is a better long-term strategic custodian for Phoenix."

The sale supports Moore's plan to reduce operating costs by $100 million, divest non-core assets, and refocus its efforts on core businesses of forms, labels, and integrated business solutions. Thus far, it has:

• reduced its worldwide employee base by 10%;
• combined its forms and labels operations in the U.S. and Canada;
• closed its research and development center in Grand Island, N.Y., and rechanneled future research efforts through its various businesses;
• combined two growth businesses, Business Communication Services and Response Marketing Services, into a new Integrated Business Solutions Group;
• launched a plan to streamline its information technology activities;
• sold its advertising and direct marketing business based in United Kingdom; and
• divested its interest in VistaInfo, an on-line provider of real estate products and services.