Ennis Signs Agreement To Acquire Assets & Business Of PrintXcel And Printegra From Cenveo
Ennis, Inc. (NYSE: EBF), a manufacturer of printed business products &
apparel headquartered in Midlothian, Texas, has agreed to acquire
certain assets of Cenveo’s document business including the manufacturing
Ennis, Inc. (NYSE: EBF), a manufacturer of printed business products & apparel headquartered in Midlothian, Texas, has agreed to acquire certain assets of Cenveo’s document business including the manufacturing facilities branded under the names PrintXcel and Printegra. Sales from both businesses are approximately $80 million annually. The PrintXcel facilities are located in Visalia, CA; Toledo, OH; Clarkesville, TN and Fairhope, AL. The Printegra facilities are located in Livermore, CA; Arlington, TX; Smyrna, GA; Indianapolis, IN; Fairport, NY; and Greensboro, NC, with a sales office in Jaffrey, NH. Trade liabilities were assumed in the transactions and the transaction is expected to close during February of 2012. The operations will continue to operate under their respective trade names of PrintXcel and Printegra. Ennis will continue to manufacture and market the pressure seal product line under the VersaSeal brand name. The acquisition will also expand the company’s high color commercial print capabilities and business check product lines and will continued to be sold through the company’s 40,000+ independent distributor network. The acquisition is expected to be accretive to Ennis' earnings in the first full year of operations. Substantially all of PrintXcel’s and Printegra’s employees will be offered positions with Ennis’ new operation. Customers can continue contacting all of the locations under the same methods. No changes to the day to day operations are expected to be made. Keith Walters, Chairman, President and CEO of Ennis, said, "Ennis is pleased to add new locations and new products to our growing number of brands. This is a major addition to the Ennis family. This acquisition expands our check capabilities and capacity while adding new customers. In addition, it will add color capabilities as well as bringing VersaSeal to our brand names. Like Ennis, PrintXcel and Printegra have been serving the distributor market for more than 80 years, and we feel this addition will positively impact customers of both companies.”
Looking at the universe of stocks we cover at Dividend Channel, on 1/5/15, Ennis Inc will trade ex-dividend, for its quarterly dividend of $0.175, payable on 2/2/15. As a percentage of EBF's recent stock price of $13.51, this dividend works out to approximately 1.30%, so look for shares of Ennis Inc to trade 1.30% lower — all else being equal — when EBF shares open for trading on 1/5/15.