Cenveo Consolidates, Pursues NECAugust 2010
STAMFORD, CT—Cenveo Inc. has found a new home for two of its Missouri facilities, according to the St. Louis Business Journal. A 220,000-square-foot plant in Eureka, MO, that formerly housed an automotive supplier will replace Cenveo plants in Sunset Hills and Crestwood.
The bigger digs will enable Cenveo to relocate 198 employees and permit room for new equipment. Mike Hecht, Cenveo vice president of sales and marketing, told the paper that the combined 145,000 square feet in the former buildings did not provide the most cost-effective workflow.
Cenveo expects to fully occupy the new building by the end of October. The lease on the Crestwood property expired in July, and Cenveo wants to sell the Sunset Hills plant for about $1.6 million, the Journal reported.
In other company news, Cenveo has submitted a filing to the U.S. Bankruptcy Court, District of Delaware, seeking help with its bid to acquire National Envelope Corp. (NEC). The company made a $140 million takeover offering for NEC before the envelope manufacturer and its affiliates filed for Chapter 11 protection on June 10.
According to Bloomberg.com, court documents filed by NEC state that it signed a letter of intent to be acquired by private equity firm Gores Group. Cenveo's attorney has charged that the deal includes a "no-shop" agreement that prohibits discussions with other potential buyers.
Cenveo wants bankruptcy judge Peter Walsh to "open up the sale process and stalking horse bidding to other potential investors to maximize recoveries for creditors."