After Stormy Courtship, Valassis and Advo Tie Knot

21 December 2006

LIVONIA, Michigan: Back in July, newspaper-coupon redemption specialist Valassis Communications agreed to acquire market-leading direct mail firm Advo in a $1.3 billion debt-financed deal.

The nuptials were hailed as a marriage made in heaven - only to sour less than two months later amid mutual recriminations of 'fraud' and 'smokescreens'.

But the loving couple, imbued with the Yuletide spirit, are now reconciled and have mutually renounced their respective lawsuits against the other.

Valassis will now pay around $1.05 billion (€795.5m; £534.4m) and assume responsibility for around $125 million of Advo's debt.

"We are pleased to have reached this amended agreement with Advo and put the litigation behind us," cooed Valassis ceo Alan Schultz.

Data sourced from Wall Street Journal Online; additional content by WARC staff