Snyder Communications
Snyder Communications Inc. (SNC) was founded in 1988 by Daniel M. Snyder and his sister Michelle Snyder. Their activities were mainly outsourced marketing services, such as Direct marketing, database marketing, proprietary product sampling, sponsored information display in prime locations, call centres, field sales.
There was an Initial Public Offering for SNC in September 1996 with a sale of 7.8 million shares at $17 a share. The IPO raised more than $130 million. Daniel Snyder became the youngest ever CEO of a New York Stock Exchange listed company at the age of 32[1].
Financial performance
SNC enjoyed organic revenue growth, but also grew aggressively through acquisitions. It acquired four other firms since the beginning of 1997, including Medical Marketing Detailing Inc., a New York-based provider of pharmaceutical marketing services; American List Corp. of Mineola, New York, which maintains a database of more than 30 million students that it rents to direct mail and telemarketing companies; Good Neighbor Direct, which provides marketing services for clients in 5,000 retail outlets; and Brann Holding Ltd., a British direct marketing company.
On an organic basis, SNC's revenue nearly doubled between 1995 and 1996 to $82.8 million. Medical Marketing Detailing itself had revenue of about $35 million in its fiscal year ended in October. American List's revenues in 1996 were about $19 million. The cost of those two acquisitions was just over $200 million[2].
Income Statement - y/e Dec. 31: 1999 1998 1997 1996 1995 $ '000 $ '000 $ '000 $ '000 $ '000 Net revenues. $638,480 $493,803 $403,072 $349,223 $286,435 ======== ======== ======== ======== ======== Income (loss) from continuing operations. $17,098 $21,360 $(16,636) $15,481 $19,425 ======== ======== ======== ======== ======== Income (loss) from discontinued operations. $(11,562) $1,446 $(10,225) $(1,415) $6,930 ======== ======== ======== ======== ======== Extraordinary item(1). $ -- $ -- $ -- $(1,216) $ -- ======== ======== ======== ======== ======== Net income (loss). $5,536 $22,806 $(26,861) $12,850 $26,355 ======== ======== ======== ======== ========
Balance Sheet - as at December 31 1999 1998 1997 1996 1995 $ '000 $ '000 $ '000 $ '000 $ '000 Total assets. $786,463 $615,614 $382,137 $273,728 $193,928 ======== ======== ======== ======== ======== Long-term debt. $190,964 $12,283 $12,856 $36,028 $37,059 ======== ======== ======== ======== ======== Redeemable ESOP stock (3). $ -- $2,960 $5,278 $2,452 $269 ======== ======== ======== ======== ======== Total equity. $271,518 $357,378 $118,261 $67,123 $36,044 ======== ======== ======== ======== ========
Source: SEC 10K filing for for the year ended December 31, 1999[3]
Prior to the IPO, Ventiv Health was hived off and distributed to the existing SNC shareholders. Circle.com, the online activities of SNC, was listed separately as a tracking stock.
In March 1997, SNC bought PromoTech Research Associates, a pharmaceutical marketing communications and direct marketing firm for an undisclosed sum[4].
In December, 1997, SNC agreed to buy Blau Marketing, a closely held direct marketing firm based in Wilton, Connecticut, for $72 million[5]. It also bought two pharmaceutical contract-sales organizations for a total of $58.5 million[6]: Pharmflex for $34 million and Rapid Deployment Group Ltd. for $24.5 million. Pharmflex, of Malvern, Pennsylvania, and Rapid Deployment, of Winchester, England, provide sales services to pharmaceutical companies.
In September 1998, acquired MKM Marketing of Munich, Germany for $58 million[7].
At the end of 1999, SNC was put up for sale by the principal shareholder, Daniel Snyder, who wanted to concentrate on football[8]. In the meantime, in January 2000, SNC officially launched Bounty SCA Worldwide[9], a division that organizes the numerous marketing services businesses it has acquired over the previous few years.
Enter Havas Advertising
On April 4, 2000, at the height of the M&A frenzy, Havas Advertising agreed[10] to acquire Snyder Communications, Inc. (SNC) in an all-share transaction in a deal worth in excess of US$2 billion. Just prior to the takeover, the market capitalisation of SNC was just US$1.3 billion.
See also
References
- ^ "The Secrets of Their Success - and Yours". Fast Company Magazine. June, 1997.
{{cite news}}: Check date values in:|date=(help) - ^ "Snyder Communications". Washington Post. April 28, 1997.
- ^ "Havas Filing 425 (Snyder Communications Inc". US Securities & Exchanges Commission. 30, Mar, 2000.
{{cite news}}: Check date values in:|date=(help) - ^ "Snyder Communications buys PromoTech". Washington Business Journal. April 1, 1999.
- ^ "Snyder Communications to Add Direct Marketing Firm". New York Times. January 1, 1998.
- ^ "Snyder Communications Acquires 2 Sales Businesses". New York Times. December 10, 1997.
- ^ "Snyder Communications scores". Washington Business Journal. September 15, 1998.
- ^ "The Greening Of The Redskins". Forbes Magazine. September 8, 2000.
- ^ "Organizing the Tool Chest: Bounty puts the service in Snyder". Promo Magazine. February 1, 2000.
- ^ "Havas Filing 425 (Snyder Communications Inc". US Securities & Exchanges Commission. 18, July, 2000.
{{cite news}}: Check date values in:|date=(help)