Cenveo Buys MeadWestvaco's Envelope Products Group
STAMFORD, CT—MeadWestvaco Corp. (MWV) has agreed to sell its Envelope Products Group to Cenveo Inc., based here. The divestiture of the Envelope Products Group, which is part of MWV's Consumer & Office Products business, 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,” added Bob Burton, 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—from affiliates of Aurora Capital Group, a Los Angeles private equity firm. Gilbreth operates a facility located in Croydon, PA, and has approximately 75 employees. It manufactures full-body shrink sleeves, tamper-evident neck bands, and medical and electronic tubing. Terms of the deal were not disclosed.