Stamford-based Cenveo Inc. has entered into an agreement to acquire “substantially all of the operating assets” of Queens-based National Envelope.
National Envelope, which bills itself as the largest privately-held manufacturer of envelopes in North America, filed Chapter 11 bankruptcy proceedings June 10 in order to facilitate a sale, according to Cenveo. National Envelope will request the U.S. Bankruptcy Court for the District of Delaware to authorize proceeding with the sale Sept. 13.
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 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 benefit earnings and cash flow per share.
“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.”
Cenveo, “a leading global provider of print and related resources, offering world-class solutions in the areas of custom labels, specialty packaging, envelopes, commercial print, content management and publisher solutions,” said a smooth integration is expected and that orders will continue to be produced and shipped in the normal course of business.
