QUAZAR’S CLIENT: AHL Services, Inc. is a leading provider of outsourced marketing support services. The Lettershop Division of Gage Marketing Services was an operation acquired when AHL purchased the Gage Business. The Lettershop Division has been in operation since the late 1960’s as a single-source provider of direct mail services. The Lettershop clientele included an impressive list of Fortune 500 clients, including advertising agencies, financial service firms, and magazine publishers. AHL Services, Inc. sought to divest of the Gage Lettershop Division, as it did not fit strategically within the future corporate strategy.
QUAZAR’S ROLE: Quazar was retained as exclusive advisor to negotiate the sale of the operation on behalf of AHL Services, Inc.
THE ENVIRONMENT: Gage Marketing Services had successfully operated the business as a stand-alone entity, offering direct mail services and marketing support to its clients as well as customers of other AHL Services, Inc. corporate divisions. The evolution of the corporate strategy, along with the increasing needs of customers requiring lettershop services, put the continued growth of the lettershop business at odds with allocated resources. The management properly concluded that the ongoing success of the operation required a strategic partner able to provide additional services and technologies.
THE SOLUTION: Quazar contacted multiple companies to pursue the acquisition of the Gage Lettershop Division. The best strategic prospects provided lettershop services and peripheral services within the printing and graphic arts industry. Quazar identified American Spirit Graphics Corporation as an ideal acquirer. Not only did American Spirit Graphics already operate a lettershop facility, but their printing and graphics solutions provided a superb platform to offer a full spectrum of printing and lettershop services to existing clients of both companies. American Spirit Graphics consolidated their lettershop operations into the former Gage location. In addition to the acquisition of the Gage Lettershop Division, Quazar also negotiated a cooperative marketing agreement between AHL Services, Inc. and American Spirit Graphics Corporation, allowing both companies to further expand the services they are able to offer their customers.