Ennis acquires Cenveo's PrintXcel and Printegra document businesses

PrintXcel and Printegra generate about $80m in annual sales, according to Ennis, with PrintXcel facilities in Visalia, CA; Toledo, OH; Clarkesville, TN and Fairhope, AL, and Printegra plants in Livermore, CA; Arlington, TX; Smyrna, GA; Indianapolis, IN; Fairport, NY; and Greensboro, NC, with a sales office in Jaffrey, NH. Ennis is also picking up Cenveo's Versaseal pressure seal form business as part of the deal.   

In an interview with PrintWeek, Ennis Marketing VP Steven Osterloh, said, "The acquisition adds many new capabilities to our organization - added color capabilities, expanding our check offering, as well as the addition of Versaseal. The brands are well known and although we won't add many customers, we will be adding significant volume through our existing customers that purchased from both entities."

The deal is expected to close sometime this month and Ennis is still evaluating both the facilities and the customer base it's getting in the transaction. "At this time there are no plans for closures or consolidation of any facilities," Osterloh said. "Capital investment will be determined as we are able to gain a better understanding of each facility, their current product lines, and their growth opportunities."

In a statement announcing the deal Cenveo CEO and chairman Robert Burton suggested the sale of some of its print documents business would enable it to better focus on our operations such as labels, specialty packaging, envelopes, print and content management. For its most recent quarter, which ended 1 Oct, 2011, Stamford, CT-based Cenveo reported a Q3 net income of $2.4m on sales of $500m, up 10% over the same period in 2010.

Ennis said there are no planned changes to its day-to-day operations as a result of the acquisition. "Many of our products do overlap, but the locations of the facilities, customer demand, and new capabilities make this acquisition a benefit for both our customers and our shareholders," noted Osterloh. "Although there is decline in the overall market, there is still significant demand and profit within this segment. We are very happy to have the opportunity to expand our offering through this transaction."