Sep. 17, 2013, 12:02 PM
- Cenveo (CVO +0.3%) sells its Custom Envelope Division to Ennis (EBF +1.7%) for $47.25M in cash and the assumption of certain trade liabilities. The unit generated $40M in sales in the last fiscal year.
- The sale comes after Cenveo acquired National Envelope during the liquidation of NE Opco for $33M. The 2 transactions represent an increased focus at Cenveo on its core direct and office product envelope business.
Sep. 11, 2013, 3:37 PM
- A bankruptcy court has approved NE Opco's liquidation, in which Cenveo (CVO -0.3%) will purchase its National Envelope business for $33M ($25M in cash, $5M in stock, and a portion of bankruptcy financing). The price tag is higher than was previously reported.
- The envelope maker fell on tough times as Internet communication supplants post.
- With 1,500 employees, eight plants, and two distribution centers capable of churning out 37B envelopes a year, National Envelope has a 15% share of the U.S. envelope market.
Aug. 21, 2013, 5:53 PM
- Cenveo shares (CVO +3.8%) are up 8.1% AH following the company's acquisition of National Envelope for $20M in cash and $5M in stock. Other parties will acquire the accounts receivable and inventory of National Envelope, which entered Chapter 11 bankruptcy in June.
- Upon integration, Cenveo expects the acquisition to add $300M to revenue and $30M in EBITDA. The company hopes the acquistion will expand its product line and geographic reach while achieving cost efficiencies.
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