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A. H. Belo Acquires Three Digital and Print Marketing Companies for $15.3 Million

Press release from the issuing company

DALLAS - A. H. Belo today announced it purchased majority ownership of Distribion, Vertical Nerve and Marketing FX for $15.3 million. The three companies specialize in local marketing automation, search engine marketing, direct mail and promotional products.

"The addition of these three new companies to our portfolio represents an opportunity for our advertising clients to take advantage of data driven marketing automation technology and services," said Jim Moroney, chairman, president and chief executive officer of A. H. Belo. "These are first-class companies, and we are excited to provide new opportunities to help our clients grow their businesses."

The existing management team for Distribion, Vertical Nerve and Marketing FX, led by CEO Tim Storer, invested alongside A. H. Belo in the transaction and will maintain their current roles in day-to-day operations. A. H. Belo's acquisition of the three companies represents another step in its ongoing strategy to diversify the Company's revenue sources.

"We are very excited to now have the resources of such a respected company like A. H. Belo behind us to help support and accelerate our ongoing growth initiatives," said Storer. "I'm looking forward to hitting the ground running in 2015 and taking each of these companies to the next level."

The three companies will offer A. H. Belo clients innovative marketing solutions to position their businesses for profitable growth. In 2015, the venture is expected to contribute between $9 - $11 million in revenue and $800,000 - $1.3 million EBITDA for A. H. Belo. The intermediary holding company will be consolidated into the A. H. Belo financial portfolio. Stephens Inc. served as financial advisor to A. H. Belo on the transaction.

Each of the companies was designed to create a more efficient and effective method to market products and services, with each filling critical needs for businesses. Distribion provides a local marketing automation solution that helps businesses generate better results from their marketing campaigns. Vertical Nerve is a digital optimization agency that enables clients to acquire more Web traffic and improve their online conversions. These services, combined with Marketing FX, a turnkey resource that provides print, packaging, ad-specialty and fulfillment services to companies nationwide, will deliver premium local print and digital marketing solutions for A. H. Belo clients. Each company is based in Dallas, Texas.

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