A private equity firm has bought the coupon redemption operations of Bloomington-based International Outsourcing Services for undisclosed terms.
Los Angeles-based Marlin Equity Partners announced today it has formed a company, ProLogic Redemption Solutions, that will help retailers recover the value of coupons used in stores. Marlin said the new company’s headquarters will be in Los Angeles.
Until International Outsourcing was indicted by a federal grand jury in March 2007, it was the nation’s largest processor of coupons for retailers. In addition to processing coupons for 40,000 retailers, the company provides outsourced manufacturing, packaging, logistics and data services.
The grand jury in Milwaukee indicted the company on charges of cheating the retailers of more than $250 million over 10 years.
The charges against the company were later dropped, but criminal charges were levied against 11 executives, including Chairman Bruce Furr, Executive Vice President Lance Furr, and Chief Financial Officer William Babler.
In October, Pepsico, Johnson & Johnson and other large companies, sued Outsourcing Services, claiming the company turned in invoices for coupons that hadn’t been used.