STAMFORD, Conn., July 12 -- Robert G. Burton, Sr., Chairman and Chief Executive Officer of Cenveo, Inc., announced today that the Company has acquired Rx Label Technology Corporation, a portfolio company of Pfingsten Partners, LLC and Hilco Equity Partners, L.P., in an all cash transaction. As the market leader in the production of pressure sensitive prescription labels to the U.S. retail pharmacy market, Rx Label generates annual revenues of approximately $40 million. The transaction is expected to be accretive to earnings in 2006. Terms of the transaction were not disclosed.
Rx Label, which will operate under the name "Rx Technology," operates from a state-of-the-art facility located in Joplin, MO. The 120-employee company is a customer-focused, quality-driven organization with a successful operating history. Specializing in providing pharmacists with labels used to dispense prescription drugs to consumers, Rx Label is the only label converter with the capabilities to produce all three prescription label technologies: simplex, duplex (both integrated and dual-web) and thermal roll. In addition, Rx Label's product line includes vinyl shelf labels, pricing labels, case labels, pallet labels and returnable plastic container (RPC) tags. Its premier customer base includes several Fortune 500 companies in the mass merchant, drug store chain, grocery, and distributor business markets.
Mr. Burton stated: "The acquisition of Rx Label marks an important milestone as we now begin the growth phase of our plan to transform Cenveo into the world's premier printing company. This acquisition, the 56th of my business career, brings Cenveo into the high growth pharmaceutical label market and is expected to be accretive to earnings this year. The acquisition will also create a platform for us to offer additional products to certain of our customers while simultaneously providing Rx Label's existing customers with the opportunity to benefit from Cenveo's core products and services. I look forward to a swift integration of this transaction and I welcome Rx Label to the Cenveo family."
Mr. Burton concluded: "We continue to execute on the plan we initiated when we came to Cenveo. With the acquisition of Rx Label, we continue to deliver on our commitment to grow the Company both organically and through thoughtful, strategic acquisitions of quality companies in higher growth sectors of the printing marketplace. This transaction, coupled with our successful debt re-financing last month, furthers the strong momentum that we are experiencing operationally. I look forward to discussing with our shareholders all of the Company's results on our 2nd Quarter conference call on August 10th."
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