Ceridian Corp., the parent to The Arbitron Co., intends to split into two publicly traded companies, Ceridian Corp. and The Arbitron Co.
According to the companies, the goal of the separation is to create two focused, well-positioned, independent companies in order to better serve distinctly different markets.
The transaction, intended to be in the form of a tax-free dividend, is expected to be completed by the end of the year, and is contingent upon a favorable IRS ruling.
After the transaction, Ceridian will be comprised of its human resources businesses and Comdata business. Ceridian expects to take a special charge, estimated to be between $25-$30 million during the fourth quarter of 2000, to cover transaction fees and costs related to Ceridian debt restructuring.
Stephen B. Morris, who currently serves as president of Ceridian’s Arbitron business, will be named president/CEO of The Arbitron Co. Ronald L. Turner, chairman, president/CEO of Ceridian, will continue on in that capacity.
Arbitron is headquartered in New York, with a research and operations center in Columbia, Md. Ceridian is headquartered in Minneapolis.
Sharon Rae Pettigrew