Undaunted Cenveo Lands Cadmus
STAMFORD, CT—It was almost too easy. After a trio of proxy and near-proxy battles over the past two years, Bob Burton found himself peacefully negotiating around the holiday season.
The result for the chairman and CEO of Cenveo was a negotiated agreement to purchase Cadmus Communications, of Richmond, VA, for $24.75 per share, or $430 million. The transaction has been approved by the boards of directors for both companies and, pending approval of Cadmus’ shareholders, is expected to close in the first quarter.
The deal effectively makes Cenveo the third-largest printer in North America, behind RR Donnelley and Quebecor World.
“Cadmus’ operations are a perfect complement to Cenveo’s product line and will create immediate cross-selling opportunities for both companies’ customers,” Burton said in a release.
Cadmus, which has 3,300 employees and sales exceeding $451 million, is perhaps best noted for its production of scientific, technical and medical journals. Burton expects to generate $20 million in annualized cost savings in the first 12 months after closing, derived from the elimination of redundant costs and a reduction in procurement expenses.
Burton vied to acquire Banta Corp. late last summer, roughly one year after he wrested control of Cenveo, but was topped by RR Donnelley on Halloween in a bid that seemingly came out of left field.