Cenveo Reaches Deal to Buy National Envelope, Will Pay $20M in Cash, $5M in Shares

Cenveo, Inc.

today announced that it has entered into a definitive agreement to acquire substantially all of the operating assets of National Envelope ("National" or the "Company").  In conjunction with Cenveo's agreement, Hilco Receivables has agreed to acquire substantially all the accounts receivable and Southern Paper has agreed to purchase the inventory of the Company. 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 expects the acquisition will better position it for continued revenue growth through an enhanced portfolio of products and services, increased geographic presence, and improved financial stability.  Cenveo also expects to benefit from overhead cost actions and facility consolidations, as well as implementing and investing in manufacturing efficiencies and best practices.  The transaction is expected to enhance Cenveo's credit profile and be accretive to earnings and cash flow per share.