CGX Decides to Stay the Course
HOUSTON—For the time being, the potential sale of the commercial printing industry’s leading consolidator will have to wait for another day. Consolidated Graphics (CGX) is not going to be sold.
After kicking around options to enhance shareholder value during a strategic review, the CGX board concluded that the best current choice is to stay the course with its current plan, as well as embark on a share repurchase program. The repurchase program calls for an investment of up to $68.3 million in issued and outstanding common shares.
According to company management, the current strategic plan is focused on achieving sales and profit growth through ongoing investment in new technology and equipment, as well as a disciplined acquisition program.
“As the board and executive management evaluated all aspects of our business, we concluded that our stock is undervalued relative to our growth opportunities—both within our existing footprint and through additional acquisitions,” noted Chris Colville, CGX executive vice president and CFO.
“Although a sale of the company was also considered, the board concluded that execution of our strategic plan and realization of our growth opportunities would yield a higher long-term return to shareholders.”