Perelman’s Coupon Company RetailMeNot to Weigh Sale Options

(Bloomberg) -- Ronald Perelman’s MacAndrews & Forbes Inc. is weighing a sale of online coupon company RetailMeNot Inc. as the billionaire reworks his empire, according to people with knowledge of the situation.

RetailMeNot, which compiles online coupon and discount codes, is in talks with would-be bidders about a potential sale that could fetch $500 million to $600 million, said the people, who asked not to be identified discussing a private matter. RetailMeNot hired investment bank Evercore Inc. to serve as its financial adviser to manage the process, the people said.

The company hasn’t made definitive plans to sell, and discussions with interested parties including private equity firms are at an early stage, according to the people. Discount drug company RxSaver which is housed under the RetailMeNot umbrella has also been up for sale, Bloomberg reported.

A representative for RetailMeNot didn’t immediately return messages seeking comment. Representatives for MacAndrews & Forbes and Evercore declined to comment.

The RetailMeNot website got over 650 million visits in the last 12 months and more than 26 million unique mobile visitors, according to company figures. It works with retailers like Macy’s Inc., Best Buy Co., and Sephora.

MacAndrews & Forbes, a holding company for Perelman’s assets, controls RetailMeNot’s parent company, Vericast Corp., formerly known as Harland Clarke Holdings. Vericast started a debt exchange earlier this year to push out maturities coming due in 2021. That deal is conditioned on Perelman injecting around $100 million of equity into the company by October, the people said.

Vericast’s loan due 2023 rose nearly 6 cents on the dollar to a bid of 79 cents after news of the potential sale, according to people familiar with the pricing. Its bonds due 2022 last traded Wednesday at around 83 cents on the dollar, according to Trace bond trading data.

Perelman, 77, is looking to divest assets and rearrange his holdings to give him more financial flexibility amid the pandemic. This week the billionaire agreed to sell a 34.9% stake in slot-machine maker Scientific Games Corp. to a group of investors for around $925 million. He sold two paintings in his collection in July for about $37 million and is seeking buyers for additional works, Bloomberg reported.

Vericast, which carries nearly $3 billion of debt, reported a double-digit decline in sales and earnings during the second quarter of 2020, Bloomberg reported last month. The losses were offset by growth at RetailMeNot, which saw its adjusted earnings grow to $17.6 million compared with $11.8 million in the same period a year earlier.

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