July 17 -- Cenveo announced today the signing of a definitive purchase agreement pursuant to which Cenveo will acquire Commercial Envelope Manufacturing Inc. of Deer Park, NY. Commercial Envelope is one of the largest envelope manufacturers in the United States
with approximately $160 million
in revenues. The transaction is projected to be completed in the third quarter and is expected to be accretive to earnings. The Kristel family, which founded Commercial Envelope in 1924, will remain with Commercial Envelope following the acquisition. The transaction is subject to terms and conditions negotiated by the parties.
Commercial Envelope operates five strategically-located production facilities across the Eastern United States, featuring some of the most technologically advanced equipment in the industry and producing over 45,000,000 envelopes per day. Its highly-skilled and talented workforce of approximately 700 employees is well known for their craftsmanship and has been the recipient of numerous awards for outstanding quality.
Robert G. Burton, Chairman and Chief Executive Officer of Cenveo, stated:
"The acquisition of Commercial Envelope will strengthen Cenveo's operations in some significant ways. Their world-class operations are complementary to ours and the combination will enhance our ability to service the direct mail marketplace. We believe that the combination of these two industry leaders will result in the strongest, most efficient and most diversified asset platform in the envelope industry that will be able to serve all of our customers' needs. "
Ira B. Kristel, of Commercial Envelope stated:
"As a leader in the envelope market, Commercial Envelope is very proud of its strong reputation for excellence made possible by the loyalty and talent of our valued employees. This combination is a powerful, positive opportunity for us to better serve our customers as we solidify our position as the country's premier envelope manufacturer. I look forward to working with the Cenveo team, and the benefits our combined companies will share."
Mr. Burton concluded:
"We continue to execute on our plan to make strategic acquisitions of high-quality niche companies in growth areas of the printing industry. The acquisition of Commercial Envelope is strategically advantageous to Cenveo as it adds considerable strength to our direct mail platform with the addition of their world-class asset base. We intend to continue to acquire strong and respected companies like Commercial Envelope. I look forward to working with Steven and Alan Kristel and their team, and a swift completion of this transaction. "