Cenveo, Inc. CVO 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.
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