Cenveo Backs Off Bid for National Envelope
STAMFORD, CT—Aug. 23, 2010—Robert G. Burton, Sr., Chairman and CEO of Cenveo, Inc. (NYSE: CVO), today issued the following statement:
"Despite offering the unsecured creditors what we believed to be the highest potential recovery out of all the bids at the auction, it became very clear to us that the debtors and the creditors' committee were requiring significantly more in cash and guarantees from Cenveo than from the other bidders and seeking to saddle Cenveo with unacceptable risk that no other bidders were being asked to bear. Under those circumstances, Cenveo had no interest in acquiring these assets. We feel we can generate substantially higher returns by just executing our game plan with our superior management team and winning in the marketplace rather than by overpaying for any business."
"As I stated on our last conference call, we expect to continue generating strong cash flow and use these funds to pay down debt or make strategic accretive acquisitions that deleverage our balance sheet and strengthen our product leadership positions. In this environment, we will remain prudent with our resources and will not overextend ourselves to acquire any company when the returns are not acceptable. I am fully committed to be the senior manager of Cenveo until we achieve and exceed our long term financial and stock price goals. Thank you for your continued support."
Cenveo (NYSE: CVO), headquartered in Stamford, CT, is a leader in the management and distribution of print and related products and solutions. The Company provides its customers with low-cost alternatives within its core businesses of labels and forms manufacturing, packaging and publisher offerings, envelope production, and printing; supplying one-stop solutions from design through fulfillment. Cenveo delivers everyday for its customers through a network of production, fulfillment, content management, and distribution facilities across the globe.