These actions mark a major step toward creating financial flexibility, one of our Blueprint for Growth goals. This is a direct result of our ongoing review of non-core businesses and assets for possible sale, as a way to create additional resources to invest for growth and increase shareholder value, said Allan Loren, D&B’s chairman and chief executive officer. As a general principle, proceeds may be used to invest in our current business, our B2B strategy or to repurchase shares. We will complete our review of asset monetization candidates and announce the results of our review by mid year.
The RMS operations being considered for sale generated about $145 million in revenue and approximately 6 percent of Dun & Bradstreet’s earnings before interest, taxes, depreciation, amortization and one-time items in 2000, and employ about 1,600 people. D&B continues to expect 10 percent earnings per share growth and 10 percent operating income growth for 2001, on average, over time, before one-time items. D&B also continues to expect revenue growth in 2001 from its core businesses to be 3 percent, on average, over time, before the effect of foreign exchange and excluding RMS.
For the U.S., Canada and Hong Kong Receivable Management businesses, D&B has signed a definitive agreement with its RMS senior management team. We are very pleased as a management team to be chosen as a trusted partner to help D&B to further its Blueprint for Growth strategy, said David Huebner, senior vice president, RMS. We look forward to a seamless transition on behalf of our shared customers.
D&B is in advanced negotiations with Intrum Justitia, B.V. for the sale of its European RMS operations. These operations generated revenue of about $45 million in 2000. Intrum is Europe’s leading receivable management services group, with a strategy to take an active part in consolidating its industry.
The parties view each other as preferred suppliers for their respective areas of expertise. As such, their discussions include the continued exchange of data and joint marketing to their shared customers. Intrum and the team of RMS senior managers are planning a collaboration that will enable them to continue to offer global receivable management services.
Both of these transactions are expected to close during the second quarter of this year, subject to the finalization of transaction documents, regulatory approvals and the satisfaction of other closing conditions.
