EXHIBIT 99
VALUEVISION INTERNATIONAL
6740 SHADY OAK ROAD
MINNEAPOLIS, MN 55344-3433
TRADED: NASDAQ (VVTV)
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
STUART ROMENESKO DANIEL SAKS OR ART BENTLEY SUZY LYNDE STEVEN SEILER
CHIEF FINANCIAL OFFICER GENERAL INFO. ANALYST CONTACT MEDIA CONTACT
(612) 947-5207 (310) 442-0599 (312) 266-7800 (310) 442-0599
FOR IMMEDIATE RELEASE
Monday, November 25, 1996
VALUEVISION ACQUIRES TWO DIRECT MARKETING COMPANIES
COMBINED ANNUAL REVENUES ARE ABOUT $30 MILLION
MINNEAPOLIS, Nov. 25, 1996...ValueVision Direct Marketing, Inc., a wholly-owned
subsidiary of ValueVision International, Inc. (NASDAQ:VVTV), today announced the
acquisition of two consistently profitable direct marketing companies which
together publish five consumer specialty catalogs and generate revenues of
approximately $30 million annually.
The sister companies -- Catalog Ventures, Inc. (CVI) and Mitchell & Webb,
Inc. (Webb), both of Boston -- create, merchandise, and publish Nature's
Jewelry, Pyramid Collection, Serengeti, NorthStyle and The Mind's Eye catalogs
with a total circulation of some 24 million annually.
Purchase price for the transaction, the third direct marketing company
acquisition for ValueVision in two months, totaled approximately $7.1 million.
CVI specializes in the acquisition and launch of consumer catalogs. Webb is
a full-service direct marketing and creative agency specializing in catalog
design, marketing services, and circulation planning for both CVI and other
clients. The businesses of both companies will be consolidated at CVI and
continue to operate in Boston under the direction of the four founding partners.
IMPETUS FOR DIRECT MARKETING EXPANSION
"CVI and Webb are well positioned to take advantage of the continuing
consolidation in the catalog industry and to exploit emerging channels of
distribution, such as electronic shopping," said Robert L. Johander, chairman
and chief executive officer of ValueVision. "They have demonstrated the ability
to identify acquisition opportunities with growth potential, negotiate favorable
purchases, integrate merchandising, marketing and fulfillment, and rapidly
expand these businesses."
On October 23, the company announced it had acquired Beautiful Images,
Inc., a leading direct marketer of women's undergarments with annual revenue of
approximately $6 million. As a result of that acquisition, William Fitzgerald,
owner of Beautiful Images, joined ValueVision as CEO of its MWD catalog
operations. Fitzgerald is a former president and chief executive officer of
Hanover House.
Nature's Jewelry, acquired by CVI in 1988, had sales of approximately $6.0
million in 1995. Pyramid Collection, acquired in 1992, generated sales of
approximately $7.0 million in 1995. Serengeti, acquired in 1993, produced
revenue of approximately $9.0 million in 1995. At the time they were acquired by
CVI, each of these catalogs had revenues of $2 million or less.
GROWTH OPPORTUNITIES
CVI recently acquired NorthStyle and The Mind's Eye catalogs. The company
plans continued future growth through the acquisition of new catalogs.
The partners of CVI and Webb are Jonathan L. Fleischmann, 40, chairman and
chief financial officer of CVI; Robert A. Piro, 42, president of CVI; Robert L.
Webb, 48, president of Webb; and R. Michael Landers, 48, vice president and
managing director of Webb. Under ValueVision's ownership, Fleischmann will be
CEO of the combined businesses. His partners will serve as vice presidents.
"This acquisition adds significant assets to our growing direct marketing
operations and will aid in our future acquisitions," Johander said. "The
management teams of these companies know how to buy catalogs, as well as run
catalog businesses, and we look forward to benefiting from their knowledge and
experience as we continue to expand our direct marketing operations."
For additional information on ValueVision International, Inc., by FAX at no
cost, dial 1-800-PRO-INFO, code #158.
(Note: The Private Securities Litigation Reform Act of 1995 provides a
"safe harbor" for forward-looking statements. Certain information included in
this news release contains statements that are forward-looking, such as
statements relating to increased revenue, operating income and potential future
acquisitions. There are certain important factors, such as consumer spending and
debt levels, interest rates, competitive pressure on sales and pricing, and
identification of acquisition targets that could cause results to differ
materially from those anticipated statements. Investors are cautioned that all
forward-looking statements involve risks and uncertainty. For more information
on the potential factors that could affect the Company's financial results,
investors should refer to the Company's filings with the Securities and Exchange
Commission, including the Company's annual report on Form 10-K and the
second-quarter 1996 report on Form 10-Q.)