TripleArc sells loss-making Stream

News by

06 April 2006

TripleArc has sold part of its loss-making direct mail arm, Stream GWC, to Formpro Mail Marketing for 1.

Formpro, the Bristol-based direct mail house, has bought the high-volume production operation, based in Swindon.

TripleArc will retain the other half of Stream, which offers low-volume direct mail and database management. It will become part of Access Plus Marketing Logistics.

Chief executive Jason Cromack said TripleArc made the move because of tough conditions in the direct mail market. He said the firm was not prepared to invest heavily in new equipment. TripleArc bought Stream in January last year from HFS in an8.64m deal.

The terms of the deal included an "earn-out" element of up to 8m, depending on the performance of the business to December 2006. The earn-out has now been settled early.

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"This is a repeat of what happened to 1066 Capital t/a Crystal a year ago. They also never put this company in administration. We are all still left unable to claim the redundancy and notice pay owed..."