Cenveo, Inc. today announced that it has entered into a definitive agreement to
acquire substantially all of the operating assets of National Envelope 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. National Envelope filed Chapter 11 on June 10, 2013 in order to
facilitate a sale. Pursuant to the definitive agreements with Cenveo and its
partners, the Company will request the US Bankruptcy Court for the District of
Delaware to authorize the Company to proceed with the sale on September 13,
2013. National and Cenveo assure its customers that a smooth integration is
expected and that orders will continue to be produced and shipped in the normal
course of business.
