Vertis Sells Prepress Packaging Assets to SGS
Thursday, September 20, 2012
Press release from the issuing company
Vertis Holdings, Inc. ("Vertis") and SGS International, Inc. ("SGS") today announced an agreement through which SGS will further augment its complete, design-to-print packaging solutions with the purchase of additional prepress packaging equipment, data files and certain related assets from Vertis.
Proceeds from the sale of these assets will allow Vertis to strengthen its overall liquidity position and further invest in its core Direct Marketing, Advertising Inserts and Large Format businesses. Vertis expects to immediately invest in a new EFI GS 5000 printer, which will expand its Large Format capacity to better meet clients' growing demand for these products, as well as new HP and Kodak ink jet heads for its Direct Marketing business.
Vertis had previously announced its intention to exit the prepress packaging business in order to focus on growing its core businesses.
"Vertis exceeded our consolidated year-to-date EBITDA projections by more than 60 percent as of July 31, driven by a series of successful operational advancements and increased client volumes," said Gerald Sokol, Jr., Chief Executive Officer of Vertis. "Building on these achievements and bolstered by the additional liquidity infusion we received as a result of our decision to exit our prepress packaging business, we continue to take steps to position our businesses for ongoing growth and success. We thank our prepress packaging employees and clients for their loyalty and wish them well in their future endeavors."
Hank Baughman, President and Chief Executive Officer of SGS, stated, "SGS provides critical services that ensure customers are able to obtain or produce consistent, high quality packaging materials. We look forward to continuing to expand our business through this transaction to better serve our customers."
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