Busy Cenveo Sells Division, Acquires National EnvelopeOctober 2013
STAMFORD, CT—Cenveo Inc. has executed a letter of intent to sell its Custom Envelope Division (CED) to Ennis Inc., a manufacturer of printed business products and apparel, headquartered in Midlothian, TX, for approximately $47.25 million in cash and the assumption of certain trade liabilities.
Cenveo's CED is comprised of the WISCO envelope brand, which is produced at a facility in Tullahoma, TN, and the National Imprint Corp. (NIC) brand, which is produced at a facility in Claysburg, PA. They collectively generated approximately $40 million in sales in the previous fiscal year.
In addition, Cenveo has received U.S. Bankruptcy Court approval for the purchase of National Envelope's assets. In conjunction with Hilco Receivables (acquiring substantially all the accounts receivable) and Southern Paper (purchasing the inventory), Cenveo has acquired substantially all of the assets of National Envelope.
"Cenveo's Custom Envelope Division has built an outstanding reputation on producing custom, short-run envelopes for the distributor channel," stated Robert Burton Sr., chairman and CEO.
"This divestiture allows Cenveo to focus on our direct and office product envelope businesses, our integration of National Envelope, and our other core operations, including the label and packaging businesses."
In other Cenveo news, Robert Burton Jr. and Dr. Susan Herbst have been appointed to the company's board of directors.