With Reiter Out as CEO, MDC Aims for Transformation

Since the completion of Maxxcom’s privatization in late July, CEO Harold Reiter has left the company. His resignation clears the way for Miles Nadal, CEO of Maxxcom parent MDC Corp., to take hands-on control in transforming MDC from a check-printing and credit-card company into a marketing-communications holding company.

“We’ve just initiated a very aggressive expansion plan, which we’ll achieve through acquisition and organic growth,” Nadal said. “We think we could be in the top 10 holding companies within the next five years. We have in excess of $100 million in cash; we expect to have another $150 million in cash in the next 18 months [after exiting MDC’s security-sensitive transaction products and services business].”

Nadal expects to reveal the first of those acquisitions within the next six months, but he did not disclose details. He said two-thirds of the company’s business comes from communications marketing and one-third from advertising, a mix he would like to maintain.

Nadal is renaming the Toronto-based concern MDC Partners to better reflect its working relationships with affiliates such as Crispin Porter + Bogusky and Margeotes|Fertitta + Partners. Bob Van Horn, a veteran of Fallon, CP+B and BBDO in Europe, has joined as vp, corporate communications, acting as liaison to agency partners. And CP+B chairman Chuck Porter is taking a more active role at MDC, helping to identify companies that might join MDC’s entrepreneurial network of affiliates.

Reiter, who joined Maxxcom in January 2002, continues as an interim consultant. His tenure, which ended Sept. 24, was marked by Maxxcom’s restoration to significant profitability in the fourth quarter.