Primark Corp.: Global Information Services Industry

Primark Corp. was emerging as a leader in the global information services industry in the mid-1990s. Through its four major divisions, the company focused its information services on financial, weather, and information technology markets. Primark also provided miscellaneous transportation and financial services. Primark was basically a utility company until 1987, when it exited that business and forged into information services.
Primark originated from the early 1980s spin-off of Michigan Consolidated Gas by American Natural Resources. At the time, American Natural Resources was operating two primary subsidiaries: Michigan Consolidated Gas, which was a distributor of natural gas serving the Detroit area, and a sister company that operated an interstate gas pipeline. Although the two companies seemed to complement each other, regulatory constraints were stifling potential synergies. The gas pipeline company, which was regulated at the federal level, was highly profitable. In contrast, Michigan Consolidated had long suffered from tepid earnings and thin rate
Furthermore, Primark was selective about its acquisitions. In 1984, for instance, the company considered but rejected a proposal to buy Continental Health Care Systems, a producer of mini-computers for hospitals. The end result of Stewart's overall strategy was that sales and profits rose, and Primark's stock price increased sharply between 1981 and 1985. Encouraged by gains, Stewart pursued more acquisitions, beginning with the 1985 buyout of The Aviation Group, a company that provided pilots and maintenance personnel to package air carriers like United Parcel Service, Emery Air Freight, and Purolator Courier. Other major buys included Telerent, which leased televisions, receivers, and satellite equipment to the hotel