NEW YORK, Jul 10, 2003 (BUSINESS WIRE) -- The Interpublic Group of Companies, Inc. (NYSE:IPG) announced today that it completed the sale of its NFO research unit to Taylor Nelson Sofres, a leading global provider of marketing research and information services.
At closing, Taylor Nelson Sofres paid Interpublic approximately $400 million in cash, plus an additional payment for NFO's net cash on hand at closing, together with 11,688,218 ordinary shares of Taylor Nelson Sofres. At the closing date of July 10, 2003, these shares had an aggregate market value of approximately $35.6 million.
Interpublic has agreed to certain restrictions on the sale of the stock consideration received from Taylor Nelson Sofres until March 2004. Interpublic will also receive an additional $10 million of cash payable approximately one year after the closing date, subject to the market price per Taylor Nelson Sofres ordinary share continuing to exceed 146 pence during a specified averaging period.
As a result of the sale of NFO, Interpublic expects to realize an accounting gain in the third quarter of 2003 of approximately $100 million, subject to various closing adjustments.
Interpublic is one of the world's leading organizations of advertising agencies and marketing services companies. Its four global operating groups are McCann-Erickson WorldGroup, The Partnership, FCB Group, and the Interpublic Sports and Entertainment Group. Major global brands include Draft, Foote, Cone & Belding Worldwide, Golin/Harris International, Initiative Media, Lowe Worldwide, McCann-Erickson, Octagon, Universal McCann and Weber Shandwick Worldwide.
This document contains forward-looking statements. Interpublic's representatives may also make forward-looking statements orally from time-to-time. Statements in this document that are not historical facts, including statements about Interpublic's beliefs and expectations, particularly regarding recent business and economic trends, and gains expected from the NFO transaction, constitute forward-looking statements. These statements are based on current plans, estimates and projections, and therefore undue reliance should not be placed on them. Forward-looking statements speak only as of the date they are made, and Interpublic undertakes no obligation to update publicly any of them in light of new information or future events.
Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, those associated with the effects of global, national and regional economic and political conditions, Interpublic's ability to attract new clients and retain existing clients, the financial success of Interpublic's clients, developments from changes in the regulatory and legal environment for advertising and marketing and communications services companies around the world and the successful completion and integration of acquisitions which complement and expand Interpublic's business capabilities. Interpublic's liquidity could be adversely affected if Interpublic is unable to access capital or to raise proceeds from asset sales. In addition, Interpublic could be adversely affected by developments in connection with the purported class actions and derivative suits that it is defending or the SEC investigation relating to the restatement of its financial statements. Its financial condition and future results of operations could also be adversely affected if Interpublic recognizes additional impairment charges due to future events or in the event of other adverse accounting-related developments.
In addition, Interpublic's representatives may from time-to-time refer to "pro forma" financial information, including information before taking into account specified items. Because "pro forma" financial information by its very nature departs from traditional accounting conventions, this information should not be viewed as a substitute for the information prepared by Interpublic in accordance with GAAP, including the balance sheets and statements of income and cash flow contained in Interpublic's quarterly and annual reports filed with the SEC on Forms 10-Q and 10-K. Investors should evaluate any statements made by Interpublic in light of these important factors.
SOURCE: The Interpublic Group of Companies, Inc.
The Interpublic Group of Companies, Inc., New York
Philippe Krakowsky, 212-399-8088
Susan Watson, 212-399-8208