Cenveo Announces Sale of Its Packaging Business, Including Six Facilities, to WestRock
STAMFORD, Conn.—December 10, 2015—Cenveo Inc. has announced that its wholly-owned subsidiary, Cenveo Corp., and certain of its other subsidiaries have entered into a definitive agreement to sell the Company's packaging business to a division of WestRock Co., a leading provider of paper and packaging solutions in consumer and corrugated markets globally. The sale involves six facilities located in the United States, Canada and Dominican Republic, along with strategic sourcing partnerships in Asia and the Caribbean that provide folded carton, shrink sleeve and lithographic laminated display packaging solutions.
Robert Burton, Sr., chairman and CEO stated, "The agreement brings conclusion to the review process of our Packaging Business which we started in the summer of 2015. The sale allows the Company to focus management's efforts on its core operations, specifically our envelopes, labels, and commercial print segments where we hold leading market positions. The transaction will generate significant cash for the Company, an important step in our stated plan to deleverage our balance sheet, improve cash flows and address certain debt maturities. Additionally, the agreement is expected to provide the Company access to one of the leading global packaging companies in the United States via a proposed commercial arrangement."
The cash purchase price for the Packaging Business is approximately $105 million, subject to certain adjustments set forth in the agreement. The transaction is subject to regulatory approval and is expected to close in early 2016.
Barclays acted as exclusive financial advisor and Hughes Hubbard & Reed acted as legal advisor to the Company.
Cenveo (NYSE: CVO), world headquartered in Stamford, Connecticut, is a leading global provider of print and related resources, offering world-class solutions in the areas of custom labels, envelopes, commercial print, content management and publisher solutions. The company provides a one-stop offering through services ranging from design and content management to fulfillment and distribution. With a worldwide distribution platform, Cenveo prides itself on delivering quality solutions and service every day for more than 100,000 customers.