Heritage to absorb Eagle in envelopes deal
Friday, November 19, 2021
Heritage Envelopes is set to merge with Eagle Envelopes to enable the two Mayer-Kuvert-network owned companies to better serve their customers.
The two sister businesses have been working closely together since Germany-headquartered Mayer-Kuvert-network acquired the remainder of the Eagle businesses that it did not already own over the course of the last two years. The German parent already wholly owned Heritage Envelopes.
“Effectively we’ve been looking at and reviewing the business model over the last couple of years,” Heritage director Phil Bryan told Printweek.
The business said that on a day-to-day basis, both companies are already managed by the same management team and several functions have long-since served both companies and are already aligned. Shareholders believe that the future of the two firms’ customers is best served through one operating company.
The strategic deal will be effective as of 1 December 2021 and the combined business will employ around 130 staff, 120 at Blackburn-based Heritage and 10 at Walsall-based Eagle. All staff have been kept on and will remain at their current premises, and Bryan said it would be “all business as usual” for customers.
Heritage said the deal will strengthen its position in the UK market and enable it to further invest and encourage further growth and development for the future.
Walsall will be the combined company’s envelope stockist and overprinting site, while the Blackburn facility will house its envelope manufacturing and paper bag manufacturing. The combined turnover should be “pushing £20m”.
A decision has yet to be made on whether the Eagle name and brand will be retained.
Heritage distributes around 1.9 billion envelopes a year, with Eagle distributing 300 million for a combined total of 2.2 billion annually – this is said to represent a fifth of all envelopes which pass through the postal services.
Both companies supply to a range of customers including the mailing industry, the print trade, and paper and office products distributors.
Heritage has continued to reinvest in the business, developing its plant with new manufacturing equipment, including two specialist paper bag machines in spring this year for bread and baguette bags, and a Winkler+Dünnebier (W+D) envelope machine around a year ago, which the company started full production on this summer.
“This machine is capable of producing four-colour flexo work. It does embossing, spot UV and double windows,” said Bryan.
“We’re finding more and more that customers are becoming more elaborate with their print, and the direct mail sector is looking for more ideas to be able to make their mail stand out and be distinguished. This adds texture to the envelopes so that it’s a bit more tactile.”
The business has also invested in solar energy to support its aims to become the most environmentally conscious producer in the country.