, Aug. 21, 2013 /PRNewswire/ -- Cenveo, Inc. (NYSE: 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
of cash and
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
in incremental annual sales and
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.
"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."
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
to authorize the Company to proceed with the sale on
September 13, 2013
. Macquarie Capital acted as Cenveo's exclusive financial advisor in connection with the transaction. Hughes Hubbard & Reed LLP acted as Cenveo's legal advisor on the transaction.
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.