Newspaper article THE JOURNAL RECORD

CMS Completes Merger, Canadian Expansion Plans

Newspaper article THE JOURNAL RECORD

CMS Completes Merger, Canadian Expansion Plans

Article excerpt

Negotiations for an expansion into Canada and completion of a merger with United Coupon Corp. of Springfield, Va., were announced Thursday by CMS Advertising Inc. of Oklahoma City.

The merger is a "giant step" for CMS from a regional firm to a national operation with more than 100 franchises direct mailing coupons to more than 1.5 million homes in 23 states for gross revenues of about $4 million, said President John Simonelli.

The proposed Canadian expansion would make it international.

All this is a jump from revenues of $320,000 in 1986 with 38 franchises in seven states for CMS, which was organized from scratch in 1984 by Simonelli and Chairman John Hazleton.

"We will continue to be headquartered in Oklahoma City," said Simonelli, "and we are actively looking for additional acquisitions of companies, such as catalog firms, which fit with our direct mail advertising but add new dimensions."

He said details of the latest two developments include:

- Expansion plans for Canada are "in the process" through a joint venture with Peter Thomas of Vancouver, owner of the Century 21 parent firm for real estate franchises throughout Canada, and a public offering.

"Thomas is a veteran of franchising," said Simonelli. "Under the deal we are negotiating, CMS would continue to own a majority interest of the company and be headquartered in Oklahoma City. The public offering would be made in Canada for the Canadian operation."

- United Coupon will become a wholly-owned subsidiary of CMS under the merger completed Thursday. As part of the merger agreement, CMS has issued 800,000 shares of restricted common stock plus $150,000 in cash to shareholders of United Coupon. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.