Cenveo Reaches Agreement to Sell Custom Envelope Division to Ennis
STAMFORD, CT—September 17, 2013—Cenveo Inc. today announced that it 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. The closing, which is expected to be on or before September 27, 2013, is subject to the completion of normal due diligence procedures and the consummation of a definitive purchase agreement between the two parties.
Cenveo’s CED is comprised of the WISCO envelope brand, which is produced at a facility in Tullahoma, TN, and the National Imprint Corporation (“NIC”) brand, which is produced at a facility in Claysburg, PA, which collectively generated approximately $40 million in sales in the previous fiscal year.
"Cenveo’s Custom Envelope Division has built an outstanding reputation on producing custom short-run envelopes for the distributor channel," stated Robert G. 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. As we have mentioned previously, we continue to evaluate our strategic options for all our operations with a focus on enhancing shareholder value.”
Cenveo (NYSE: CVO), headquartered in Stamford, CT, is a leading global provider of print and related resources, offering world-class solutions in the areas of custom labels, specialty packaging, envelopes, commercial print, content management and publisher solutions. The company provides a one-stop offering through services ranging from design and content management to fulfillment and distribution. With a worldwide distribution platform, we pride ourselves on delivering quality solutions and service every day for our more than 100,000 customers.
Ennis Inc. is primarily engaged in the production 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, Mexico and Canada, to serve the company’s national network of distributors. The company, together with its subsidiaries, operates in two business segments: print and apparel. The print segment manufactures and sells 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.