The Stamford Advocate: Bacon's pays $8M for Norwalk company

Original story printed in The Stamford Advocate - January 4, 2005

by Richard Lee
Assistant Business Editor

Chicago-based media watcher Bacon's Information Inc. has bought Norwalk-based Delahaye Medialink, a public relations-focused media evaluation and consulting services firm with offices in Portsmouth, N.H., Washington D.C., and London.

Bacon's, a division of Observer AB, a Swedish-based media intelligence services firm, with offices in 13 countries in North America and Europe, paid New York City-based Medialink Worldwide Inc. $8 million for the Norwalk company.

Delahaye has a staff of about 100 who analyze the impact of news media coverage on the reputations of global corporations and helps those clients measure the value of their public.relations efforts. The company has annual revenue of $9 million, is projected to break even for the 2004 fiscal year, which ended Dec. 31.

Bacon's Information and Delahaye complement each other, said Mark Weiner, who will continue as president of Delahaye.

"Our clients will now have greater access to content and content-related services through Bacon's comprehensive media monitoring services," Weiner said. "Bacon's clients now have access to Delahaye's extensive public relations consulting and media evaluation expertise."

The sale will not affect Delahaye's 40-person office on Connecticut Avenue in Norwalk, Weiner said.

Bacon's has wanted to enter Delahaye's field, said Joe Bernardo. Bacon's president and chief operating officer, and it eliminates Bacon's need to start its own operation.

"It would have taken a number of years of organic growth," Bernardo said.

One of Medialink's goals in the sale, said Laurence Moskowitz, Medialink chairman, president and chief executive officer, was to find a buyer that would nurture and grow Delahaye.

Medialink will retain ownership of its Teletrax operation, which shares the Connecticut Avenue building with Delahaye, Moskowitz said.

Teletrax, which has 10 employees, provides global television tracking and media asset management services to help clients determine return on their programming and advertising investments.

Delahaye accounts for 20 percent of Medialink's total revenue. hut the gross proceeds from the sale represent 40 percent of Medialink's market capitalization. Moskowitz said, calling the sale a good business decision.

"We enter 2005 with strong capital underpinning and refocused on our most promising services." Moskowitz said, noting that in November Medialink secured a $5 million investment to spur growth in Teletrax and reduce the company's line of credit borrowings.

The financing came amid new Teletrax contract signings with ABC Television. Buena Vista Television and Great Britain's BBC, as well as a cone act expansion with NBC Channel News.