Cenveo Sells CED to Ennis for $47.25M
STAMFORD, CT—Cenveo Inc. 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 Sept. 27, 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 Corp. (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 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.”
In other Cenveo news, the company announced that Robert Burton Jr. and Dr. Susan Herbst have been appointed to its board of directors.