Goldman, Sachs Purchases Shares in Catalina Corp.

Catalina Marketing Corp., the nation’s leading in-store electronic marketer, said Thursday that investment banker Goldman, Sachs & Co. and affiliates have purchased 11.5% of the privately held company’s outstanding common stock.

Goldman, Sachs paid an undisclosed cash sum for the shares, which were purchased from some of Catalina’s original founders and some former managers, said Joseph Proctor, Catalina’s chief financial officer and vice president.

The transaction makes Goldman Sachs the largest shareholder in Catalina.

The 6-year-old firm offers consumer coupon and incentive programs through computer systems at grocery store checkout counters.

Catalina developed the “Coupon Solution,” a computer process that allows supermarket checkers to hand cents-off coupons to customers at the cash register. In October, the company began a nine-month test of a “frequent shopper” reward system--akin to trading stamps or frequent-flyer programs--which offers rebates or merchandise to loyal shoppers at selected supermarket chains.

Catalina’s revenue totaled $25 million in 1989--its first year of profitability--up from $12 million the previous year, Proctor said. The company has 150 employees in 13 offices throughout the country.

The sale of shares to Goldman, Sachs was made because the sellers wanted liquidity in their investments, Proctor said. Representatives of Goldman, Sachs could not be reached for comment Thursday.

The investment banker’s decision to invest in Catalina shows that “the financial community recognizes Catalina as a tremendous growth company,” said Catalina’s chief executive, Michael O’Brien.

With the sale, the largest shareholders--in addition to Goldman, Sachs--are O’Brien and Pacific Telecomm Inc., a Northwestern utility company. Proctor declined to reveal their respective interests but said the top three have almost the same number of shares.