Vertis Sells Prepress Packaging to SGS, Bolsters Inkjet
BALTIMORE—Vertis Holdings and SGS International announced an agreement under which SGS will augment its design-to-print packaging solutions with the purchase of additional prepress packaging equipment, data files and certain related assets from Vertis.
Proceeds from the sale of these assets will allow Vertis to strengthen its overall liquidity position and further invest in its core direct marketing, advertising inserts and wide-format businesses. Vertis expects to immediately invest in a new EFI GS VUTEk 5000 inkjet printer, which will expand its wide-format capacity to better meet clients’ growing demand for these products, as well as new HP and Kodak inkjet heads for its direct marketing business.
Vertis had previously announced its intention to exit the prepress packaging business in order to focus on growing its core businesses.
“Vertis exceeded our consolidated year-to-date EBITDA projections by more than 60 percent as of July 31, driven by a series of successful operational advancements and increased client volumes,” said Gerald Sokol Jr., CEO of Vertis. “Building on these achievements and bolstered by the additional liquidity infusion we received as a result of our decision to exit our prepress packaging business, we continue to take steps to position our businesses for ongoing growth and success. We thank our prepress packaging employees and clients for their loyalty and wish them well in their future endeavors.”
SGS International offers design-to-print graphic services to the international consumer products packaging industry primarily in North America, Europe and Asia.