DAYTON, Ohio & MIDLOTHIAN, Texas--June 25, 2004-- Ennis, Inc. (formerly Ennis Business Forms, Inc.) a manufacturer of printed business products headquartered in Midlothian, Texas, and Centrum Equities, Inc, a privately held company headquartered in Chicago, have entered into a definitive agreement to sell 100% of the stock of Crabar/GBF to Ennis for $18 million in cash less debt assumed. The acquisition of Crabar/GBF, along with the separately announced merger with Alstyle Apparel, continues the Ennis strategy of growth through related manufactured products (the Crabar/GBF acquisition) or acquiring growing product lines (apparel products) for our existing customer base. The acquisition will add high-quality long and medium run print production, along with pressure sensitive labels and form-label combinations to Ennis' current line of medium- and short-run print products and solutions, financial documents, print fulfillment, labels, collateral materials, POP commercial printing, forms and logistics services, and promotional products sold through the indirect sales (distributorship) marketplace. The Boards of Directors of both companies have unanimously approved the agreement.
The transaction is expected to be accretive to Ennis's earnings in the first full year of operations. In addition to significantly enhanced revenue opportunities it deepens the penetration of Ennis' geographic footprint in the United States as well as expands the product capability of Ennis in the forms marketplace. Crabar GBF has operating facilities in Cerritos, Calif.; Bellville, Texas; Princeton, Ill.; Medfield, Mass.; Edison, N.J.; El Dorado, Mo., and Leipsic, Ohio, as well as an administrative center in Dayton, Ohio. Crabar/GBF had sales of $69 million in the most recent fiscal year end. Roger Brown, President and CEO of Crabar/GBF, will continue to be active in the forms industry exploring possible transactions on behalf of Ennis which would be financially attractive to Ennis.
Keith Walters, Chairman, President and CEO of Ennis, said, "Today's announcement is another positive step forward in the continued growth and consolidation of the forms business for Ennis. The transaction will place Ennis among the top players in the forms and printed products arena serving the 40,000 independent distributors and printers who comprise the largest share of the forms marketplace. It is great news for our customers, our employees and our shareholders."
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