Ennis signs letter of intent to acquire assets of Cenveo's Custom Envelope Division for expected price of US$47.25M; division includes WISCO envelope brand, National Imprint Corp. brand
September 17, 2013
– Ennis, Inc. (the “Company"), (NYSE: EBF), today announced that it has executed a letter of intent to acquire the assets of the Custom Envelope Division, part of the Custom Resale Group, from Cenveo, Inc. (NYSE: CVO). 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 definite purchase agreement between the two parties. The Custom Envelope Division (“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 in a leased facility in Claysburg, PA. WISCO produces and folds various types of envelopes, and NIC is an imprinter of envelopes. Both of these products are sold through print distributors.
The Company expects to pay approximately $47.25 million in cash for the assets of the CED and assume certain trade liabilities. CED generated approximately $40 million in sales in the previous fiscal year.
Keith Walters, Chairman, Chief Executive Officer and President of Ennis, Inc., commented by stating, “We are very pleased to add these two brands and locations to the Ennis family. It is very important to expand our envelope capabilities and production on the east coast to complement our products and capabilities in the middle of the country and the West coast. These products are sold through our normal sales channel of independent distributors, so these two businesses complement our current business model. Overall we feel very excited to bring the WISCO and NIC brands to our distributor channel.”
Ennis, Inc. (www.ennis.com) 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, 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. 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.
￼Cenveo (NYSE: CVO), headquartered in Stamford, Connecticut, 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. For more information please visit us at www.cenveo.com.