MIDLOTHIAN, Texas--Dec. 28, 2005-- Ennis, Inc., a manufacturer of printed business products headquartered in Midlothian, Texas has entered into an agreement to acquire Tennessee Business Forms/Avant-garde ("TBF") a privately held company headquartered in Tullahoma, Tennessee. The acquisition, which is expected to be completed effective January 1, 2006, involves the purchase of the outstanding stock of TBF, as well as the associated land and buildings from a partnership which leases the facility to TBF. There are no material relationships between Ennis and the parties. The acquisition of TBF continues the Ennis strategy of growth through acquisition of complimentary manufactured products to further service our existing customer base. The acquisition will add additional short-run print products and solutions as well as integrated labels and form/label combinations sold through the indirect sales (distributorship) marketplace.
The transaction is expected to be accretive to Ennis' earnings in the first full year of operations, excluding the impact of transaction related charges. TBF had sales of $2.2 million for the past year ended December 31, 2004. Mr. Robert Boldig, President, and CEO of TBF will stay on as the General Manager of TBF and will also assist the company in developing its other product lines.
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 into Ennis. While this acquisition is smaller than our normal transaction, it was attractive due to its location, product mix and its fine reputation in the marketplace due in large part to Bob Boldig's efforts over many years. The transaction will add to the growth in the forms business that has placed Ennis among the top players in the forms and printed products arena and continue to serve our 40,000 independent distributors and printers who comprise the largest share of the forms marketplace. We are delighted to have Bob Boldig as a part of the Ennis team and feel his knowledge of and reputation within the industry will be invaluable to the Company. This is great news for our customers, our employees and our shareholders."
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