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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report: May 18, 1999
VIAD CORP
(Exact name of registrant as specified in its charter)
DELAWARE 001-11015 36-1169950
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
1850 N. CENTRAL AVE., PHOENIX, ARIZONA 85077
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (602) 207-4000
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Item 5. Other Events.
In a press release dated May 18, 1999, Viad Corp ("Viad"),
announced the sale of its airline catering business, Dobbs
International Services, Inc. The transaction is expected
to close in the third quarter of 1999 and is subject to
obtaining regulatory approval.
A copy of the press release issued by Viad is attached as
Exhibit 99 to this report.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
(99) Press Release
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
VIAD CORP
By: /s/ Jack A. Modzelewski
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Jack A. Modzelewski
Chief Financial Officer
DATE: May 18, 1999
Exhibit 99
William H. Peltier
602/207-5812
[email protected]
VIAD CORP SELLS DOBBS INTERNATIONAL SERVICES, INC.
TO SAIRGROUP
Owners of Swissair and Gate Gourmet In-flight Catering
PHOENIX, Ariz., May 18, 1999 - Robert H. Bohannon, chairman, president and
chief executive officer, Viad Corp (NYSE:VVI), today announced the sale of
Dobbs International Services, Inc., to SAirGroup, Zurich, Switzerland. The
transaction is expected to close early third quarter, and is subject to
obtaining regulatory approval.
"This is a major move for us and consistent with our long-term
strategic plan," Bohannon said. "The sale of the airline catering business
will allow us to reallocate our assets into high-growth companies with margins
that meet our specific goals. Dobbs has been an outstanding performer in a
very difficult market category through all the years we've owned them.
However, the dynamics of the industry have necessitated a more global approach
and the investment costs for Viad would have been prohibitive. We believe they
now have the opportunity for even greater success under their new ownership."
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Proceeds from the sale will be used to fund strategic acquisitions
that will strengthen Viad's core businesses--money order and money wire payments
services and exhibition/convention services--and to repurchase stock and pay
down debt.
George Alvord, chief executive officer of Dobbs and a 30-year veteran
in the foodservice industry, will remain with Dobbs in his present position.
In the last two years, Viad has been trimming its business portfolio
with a series of divestitures of non-core assets. Included is the sale of
Restaura foodservice operations, a duty-free business, Premier Cruise Lines,
two U.K. vacation operations, an airline ground services company, an interest
in the Phoenix Suns and the 24-story Viad Tower.
"By sharpening our focus, we can direct our energies more fully on
growing our core businesses, as well as facilitate the understanding of our
business in the investment community," Bohannon added. The company announced
its second consecutive year of earnings per share growth of more than
20 percent. The company also recently announced a 33 percent increase in
first-quarter earnings per share.
Viad was advised by Donaldson, Lufkin & Jenrette and
Goldman, Sachs & Co.
Viad Corp is a $2.5 billion S&P MidCap 400 company. Its major
subsidiaries include Travelers Express Company of Minneapolis, GES Exposition
Services of Las Vegas and Exhibitgroup/Giltspur of Chicago.
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