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Sunday, August 8, 1999
SLEEPY EYE -- On Friday Norwood Promotional Products, Inc. (NPP), announced it signed a definitive purchase agreement to acquire Advertising Unlimited, Inc. (AUI), a subsidiary of R.L. Polk & Co. The contract was signed by Polk & Co. on Tuesday and it will include the stock of AUI's United States operations operations in Sleepy Eye and Red Wing Minnesota, Plastag ( a recently acquired manufacturer of plastic cards), Elk Grove Village, Illinois, and the assets of AUI's operations in Canada. The closing is expected to occur in mid to late August. Officials from AUI and Norwood (NPP) did not return phonecalls by late Saturday afternoon and were unavailable for comment. Art Olsen, President and Chief Operating Officer of the Polk Company said Friday in an announcement made at AUI headquarters in Sleepy Eye, "While AUI has been a star performer for Polk, the decision to sell the company reflects our strategic focus on our core business activities. We believe this transaction is in the best interest of both AUI and Polk." Olsen, who was president of AUI from 1987 to 1995 also said, "AUI's leadership in the calendar and business accessories market is an important addition to Norwood's merchandise mix. We are pleased that AUI will join a company that is recognized for its high quality products and service, operational excellence and well-known brands. Norwood was clearly impressed with AUI's superior performance and staff." Norwood Promotional Products, Inc. is the leading supplier of promotional products with over 3,000 items in its merchandise mix. The companies products are sold by more than 12,000 distributors in both domestic and international markets. Frank P. Krasovec, Norwood's Chairman, President and Chief Executive Officer said, "Norwood's vision is to become the world's leading promotional products supplier and AUI is an excellent strategic fit. AUI's leading position in calendars and business accessories complements our existing businesses. When this acquisition is completed, Norwood will have a leadership position in 10 of 13 industry categories." The President of AUI, Gary Date said, "We are very pleased to be joining with an industry leader that has earned a strong reputation for high-quality products, operational excellence and superior customer service." AUI, the sixth largest domestic supplier in the $13.2 billion promotional products industry, is a leader in the calendar segment of the market. AUI's annual sales are approximately $120 million. On a pro forma basis, the combined Norwood revenues in 1998 were approximately $400 million.
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