Cenveo Inc. announced today that it has agreed to sell its Forms and Business Documents Group to Ennis Inc., a manufacturer of printed business products and apparel headquartered in Midlothian, Texas. The agreement includes Cenveo’s Printegra and PrintXcel brands. The sale is expected to close during February 2012. Terms of the transaction were not disclosed, but trade liabilities will be assumed by Ennis.
“This divestiture allows Cenveo to focus on our core operations including labels, specialty packaging, envelopes, print and content management,” said Robert G. Burton, Sr., Chairman and CEO of Cenveo. “We remain committed to executing our game plan of operating niche growth businesses while using our cash flow to invest in and grow our higher margin product groups and de-leveraging our balance sheet to achieve our stated leverage targets by the end of next year.”
According to Ennis, the combined sales of PrintXcel and Printegra total approximately US$80 million annually. The PrintXcel facilities are located in Visalia, CA; Toledo, OH; Clarkesville, TN; and Fairhope, AL. The Printegra facilities are located in Livermore, CA; Arlington, TX; Smyrna, GA; Indianapolis, IN; Fairport, NY; and Greensboro, NC, with a sales office in Jaffrey, NH.
If the purchase succeeds, Ennis states it will continue to market the PrintXcel and Printegra brands in addition to its pressure-seal product line under the VersaSeal brand name. The acquisition will also expand Ennis’ commercial print capabilities and business check product lines, which are sold through more than 40,000 independent distributors.
“Ennis is pleased to add new locations and new products to our growing number of brands,” said Keith Walters, Chairman, President and CEO of Ennis. “This is a major addition to the Ennis family. This acquisition expands our check capabilities and capacity while adding new customers.”