Cenveo to Purchase National Envelope
Cenveo announced that it entered into a definitive agreement to acquire substantially all of the operating assets of National Envelope. In conjunction with Cenveo’s agreement, Hilco Receivables has agreed to acquire substantially all National’s accounts receivable and Southern Paper has agreed to purchase its inventory.
Cenveo’s purchase price is expected to consist of approximately $20 million of cash and $5 million of Cenveo common stock. The closing is subject to Bankruptcy Court approval and customary closing conditions.
Cenveo expects that the acquisition of National will deliver approximately $300 million in incremental annual sales and $30 million of incremental EBITDA when the integration of the two companies is complete. Cenveo also expects to benefit from overhead cost actions and facility consolidations, as well as implementing and investing in manufacturing efficiencies and best practices.
“This transaction allows us to achieve our dual objectives of expanding our leading position in the envelope market and continuing to position us for continued growth,” said Robert G. Burton, Sr., chairman and CEO of Cenveo. “This transaction is expected to benefit customers by providing a broad range of products and services that are unparalleled in the market. We believe the combination is also in the mutual best interests of both Cenveo and National, as it creates a financially stronger company. We look forward to a seamless integration of the businesses and to continuing to provide the highest level of service to customers.”
National Envelope filed Chapter 11 in June 2013 in order to facilitate a sale. Pursuant to the definitive agreements with Cenveo and its partners, the company will request the U.S. Bankruptcy Court for the District of Delaware to authorize the company to proceed with the sale in September 2013.
Stamford, CT-based Cenveo is a global provider of print and related resources, offering solutions in the areas of custom labels, specialty packaging, envelopes, commercial print, content management and publisher solutions.
Previously on abfjournal: Salus Capital Provides DIP in National Envelope Bankruptcy, June 12, 2013