Cenveo to Sell Its Forms and Business Documents Group to Ennis
STAMFORD, CT—Jan. 30, 2012—Cenveo Inc. announced that it has agreed to sell its Forms and Business Documents Group to Ennis Inc., a manufacturer of printed business products and apparel headquartered in Midlothian, TX. The divestiture of the group, including the Printegra and PrintXcel brands, to Ennis is expected to better position that business for continued growth and success.
The sale is expected to close during February 2012. Terms of the transaction were not disclosed.
According to Ennis, the combined sales of PrintXcel and Printegra total approximately $80 million annually. The PrintXcel facilities are located in Visalia, CA; Toledo, OH; Clarkesville, TN and Fairhope, AL. The Printegra facilities are located in Livermore, CA; Arlington, TX; Smyrna, GA; Indianapolis, IN; Fairport, NY; and Greensboro, NC, with a sales office in Jaffrey, NH. Trade liabilities were assumed in the transactions.
The operations will continue to operate under their respective trade names of PrintXcel and Printegra. Ennis will continue to manufacture and market the pressure seal product line under the VersaSeal brand name. The acquisition will also expand the Ennis’ high-color commercial print capabilities and business check product lines, which will continued to be sold through the company's 40,000+ independent distributor network.
Substantially all of PrintXcel’s and Printegra’s employees will be offered positions with Ennis’ new operation. Customers can continue contacting all of the locations under the same methods. No changes to the day to day operations are expected to be made.
Robert G. Burton, Sr., Chairman and CEO, stated, “Cenveo’s Documents Group has built its leading position and strong reputation on producing business forms and document products to meet a variety of business customer needs. This divestiture allows Cenveo to focus on our core operations including labels, specialty packaging, envelopes, print and content management.
“We remain committed to executing our game plan of operating niche growth businesses while using our cash flow to invest in and grow our higher margin product groups and de-leveraging our balance sheet to achieve our stated leverage targets by the end of next year. I look forward to sharing our fourth quarter results and outlook for 2012 when we release earnings next month,” Burton added.
Keith Walters, Chairman, President and CEO of Ennis, said, “Ennis is pleased to add new locations and new products to our growing number of brands. This is a major addition to the Ennis family. This acquisition expands our check capabilities and capacity while adding new customers.
“In addition, it will add color capabilities as well as bringing VersaSeal to our brand names. Like Ennis, PrintXcel and Printegra have been serving the distributor market for more than 80 years, and we feel this addition will positively impact customers of both companies,” Walters continued.
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, Texas, 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.
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 envelopes, custom labels, specialty packaging, commercial print, and publisher solutions. The company provides a one-stop offering through services ranging from design and content management to fulfillment and distribution. With approximately 9,000 employees worldwide, we pride ourselves on delivering quality solutions and service every day for our more than 100,000 customers.
Sources: Cenveo & Ennis.