Ennis Signs Asset Purchase Agreement for Sovereign Business Forms Plants
MIDLOTHIAN, TX—June 4, 2014—Ennis Inc. has announced that two of its subsidiary companies have entered into a definitive agreement to acquire substantially all of the assets of Sovereign Business Forms and five related entities:
- TRI-C Business Forms in Houston
- Falcon Business Forms in Corsicana, TX
- Forms Manufacturers in Girard, KS
- Mutual Graphics in Knoxville, TN
- Curtis Business Forms in Holyoke, MA
The closing, which is expected to be on or before June 16, 2014, is subject to the completion of customary due diligence and customary conditions to closing. Sales from the businesses totaled approximately $27.1 million in calendar year 2013. The company expects that the businesses will continue to operate under their existing trade names and remain in their existing locations. The company believes that the acquisition will be accretive to earnings in the current year.
Keith Walters, chairman, CEO and president of Ennis Inc., commented, “We are very pleased to add these five brands and locations to the Ennis family. These facilities produce traditional business forms and allow us to expand into the Houston market and the New England marketplace. The other three markets supplement our existing locations nearby. These products are sold through our customary sales channel of independent distributors, and should complement our current business model. With these acquisitions we are close to operating 50 print locations throughout the United States.”
Ennis Inc. is primarily engaged in the production of and sale of business forms, apparel and other business products. The company is one of the largest private-label printed business product suppliers in the United States. Headquartered in Midlothian, TX, the company has production and distribution facilities strategically located throughout the United States of America, Mexico and Canada, to serve the company’s national network of distributors.
The company, together with its subsidiaries, operates in two business segments: the Print Segment (“Print”) and Apparel Segment (“Apparel”). The Print Segment is primarily engaged in the business of manufacturing and selling business forms, other printed business products, printed and electronic media, presentation products, flex-o-graphic printing, advertising specialties and Post-it Notes, internal bank forms, plastic cards, secure and negotiable documents, envelopes and other custom products. The Apparel Segment manufactures T-Shirts and distributes T-Shirts and other active-wear apparel through nine distribution centers located throughout North America.