MeadWestvaco to Sell Its Envelope Products Business to Cenveo
RICHMOND, VA/STAMFORD, CT—Nov. 29, 2010—MeadWestvaco Corp. has agreed to sell its Envelope Products Group to Cenveo Inc., a leading graphic communications company based in Stamford, CT. The divestiture of the Envelope Products Group, which is part of MWV's Consumer & Office Products business, to Cenveo will better position the business for continued growth and success. The sale is expected to close at the end of 2010. Terms of the agreement were not disclosed.
“The Envelope Products Group has built its leading position and strong reputation on producing high quality envelope products to meet a variety of business customer needs,” said Neil McLachlan, president, MWV Consumer & Office Products. “This is an important step in achieving the next level of growth for the Envelope business.”
“Cenveo is focused on expanding its envelope platform, and adding the Envelope Products Group underscores our continued strategic growth plan for the business,” said Robert G. Burton, Sr., chairman and CEO of Cenveo. “We look forward to a seamless integration of our business and servicing our customers with an enhanced array of products and services that is unparalleled in the market. We believe that this acquisition will be accretive to Cenveo's earnings in the first year of combined operations.”
The Envelope Products Group has approximately 910 employees in the United States and all are expected to transition to Cenveo. Labor agreements will remain in place at Envelope Products Group locations.
In other company news, Cenveo has acquired Impaxx Inc., the sole owner of Gilbreth Packaging Solutions (www.gilbrethusa.com), from affiliates of Aurora Capital Group, a Los Angeles private equity firm. Gilbreth operates a state of the art facility located in Croydon, PA, and has approximately 75 employees.
Gilbreth uses multiple printing technologies as a full-service manufacturer and marketer of full-body shrink sleeves ("FBSS"), tamper evident neck bands and medical & electronic tubing. Gilbreth is a pioneer in the FBSS industry and leverages its expertise by serving over 150 customers in a wide variety of industries with an emphasis on the personal care, pharmaceutical, nutraceutical, energy drink and food & beverage markets. Gilbreth’s major customer base includes a number of blue chip consumer product companies. The terms of the transaction were not disclosed.