Valassis Plunks Down $1.3 Billion for ADVO

LIVONIA, MI—Direct mail marketing specialist ADVO Inc. will be added to the Valassis stable in a $1.3 billion deal, or $37 per share. The company will retain Valassis’ headquarters here and will also maintain a presence in Windsor, CT.

Valassis expects the acquisition to be accretive to 2007 cash earnings per share, excluding certain items. Total revenues for the combined company is projected to be $2.65 billion in 2007. Synergies are projected to result in annual cost savings of $40 million, beginning next year.