Ennis Inc. Signs Letter of Intent to Acquire the Custom Envelope Division from Cenveo
Ennis Inc., Midlothian, Texas, 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. 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, Tenn., 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.
We are very pleased to add these two brands and locations to the Ennis family," said Keith Walters, chairman, president and CEO of Ennis Inc. "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."
Last month, Cenveo acquired substantially all of the assets of National Envelope. "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," said Robert G. Burton, Sr., chairman and CEO of Cenveo. "As we have mentioned previously, we continue to evaluate our strategic options for all our operations with a focus on enhancing shareholder value."
Related story: National Envelope Gains Court Approval of Sale to Cenveo