Cimpress Acquires National Pen Co.
National Pen Co. will complement the investment Cimpress already has made in its technology and supply chain capabilities for promotional products, apparel and gifts offerings.
"Just like business cards, custom pens are a simple yet highly effective way for small-business owners to market their companies," said Robert Keane, president and CEO of Cimpress. "National Pen has tremendous mass customization and related supply chain capabilities with which they deliver an unrivaled breadth and depth of customizable writing instruments with low minimum order quantities that meet the low-volume needs of small businesses. We look forward to welcoming National Pen's team members and customers to Cimpress."
As part of Cimpress, National Pen Co. will continue to go to market as it does today, through its primary sales channel, which is a combination of direct mail and telesales.
Additionally, Cimpress expects to support and further develop National Pen Co.'s emerging e-commerce presence and to introduce the National Pen Co. product range into its Vistaprint, and Upload and Print e-commerce brands.
"National Pen is a clear leader in one of the key promotional product segments, and has excellent manufacturing and supply chain capabilities, which we do not have today," said Keane. "By combining the company's capabilities and expertise with those of Cimpress, we are confident we can help to grow both National Pen and the promotional products offering of our existing portfolio of brands."
"We believe our industry is at the beginning of a period of disruptive shift to e-commerce, and we are thrilled about the opportunities that joining Cimpress will create for our customers and team members," said Peter Kelly, president and CEO of National Pen Co. "We expect our business to thrive as part of Cimpress, and we look forward to pursuing an exciting vision together to strive to eliminate the cost barriers that currently keep businesses from fully expressing their individual brands across a wide variety of personally relevant marketing materials and gifts."
Under the terms of the agreement, Cimpress will acquire 100 percent of the outstanding equity interests of National Pen Co. for a purchase price of approximately $218 million subject to customary adjustments for net debt and working capital. Consideration at closing for the transaction will be in cash, using Cimpress' existing credit facility.
During October and November 2016, Cimpress purchased 593,763 of its own shares for $50 million inclusive of transaction costs, an average price per share of $84.22.
For more information on Cimpress, visit www.cimpress.com.