MeadWestvaco to Sell Its Envelope Products Business to Cenveo
RICHMOND, VA/STAMFORD, CT—Nov. 29, 2010—MeadWestvaco Corp. has agreed to sell its Envelope Products Group to Cenveo Inc., a leading graphic communications company based in Stamford, CT. The divestiture of the Envelope Products Group, which is part of MWV's Consumer & Office Products business, to Cenveo will better position the business for continued growth and success. The sale is expected to close at the end of 2010. Terms of the agreement were not disclosed.
“The Envelope Products Group has built its leading position and strong reputation on producing high quality envelope products to meet a variety of business customer needs,” said Neil McLachlan, president, MWV Consumer & Office Products. “This is an important step in achieving the next level of growth for the Envelope business.”
“Cenveo is focused on expanding its envelope platform, and adding the Envelope Products Group underscores our continued strategic growth plan for the business,” said Robert G. Burton, Sr., chairman and CEO of Cenveo. “We look forward to a seamless integration of our business and servicing our customers with an enhanced array of products and services that is unparalleled in the market. We believe that this acquisition will be accretive to Cenveo's earnings in the first year of combined operations.”
The Envelope Products Group has approximately 910 employees in the United States and all are expected to transition to Cenveo. Labor agreements will remain in place at Envelope Products Group locations.
In other company news, Cenveo has acquired Impaxx Inc., the sole owner of Gilbreth Packaging Solutions (www.gilbrethusa.com), from affiliates of Aurora Capital Group, a Los Angeles private equity firm. Gilbreth operates a state of the art facility located in Croydon, PA, and has approximately 75 employees.
Gilbreth uses multiple printing technologies as a full-service manufacturer and marketer of full-body shrink sleeves ("FBSS"), tamper evident neck bands and medical & electronic tubing. Gilbreth is a pioneer in the FBSS industry and leverages its expertise by serving over 150 customers in a wide variety of industries with an emphasis on the personal care, pharmaceutical, nutraceutical, energy drink and food & beverage markets. Gilbreth’s major customer base includes a number of blue chip consumer product companies. The terms of the transaction were not disclosed.
Burton stated: “The acquisition of Gilbreth expands our specialty packaging into the growing shrink sleeve market. Gilbreth's product line complements Cenveo's existing offerings and will create immediate cross-selling opportunities for both companies' customers. The acquisition of Gilbreth, with its strong market reputation and strategic niche product offerings, is another example of how we intend to continue to grow our company by acquiring leaders in high growth sectors of the packaging industry.”
About MWV Consumer & Office Products
MWV Consumer & Office Products, a division of the MeadWestvaco Corp., is the leading manufacturer and marketer of the most trusted brands in school supplies, office products, planning, and organizing tools, including Mead, Five Star, AT-A-GLANCE, DayMinder, Cambridge, Academie, Day Runner and Amcal brands, among others. MWV Consumer & Office Products produces notebooks, folders, decorative calendars, stationery products, and time management and personal organizers for every stage of life. For more information, please visit www.mead.com.
About MWV
MeadWestvaco Corp., provides packaging solutions to many of the world’s most-admired brands in the healthcare, beauty and personal care, food, beverage, home and garden, tobacco, and commercial print industries. The company's businesses also include Consumer & Office Products, Specialty Chemicals, and the Community Development and Land Management Group, which sustainably manages the company's land holdings to support its operations, and to provide for conservation, recreation and development opportunities. With 19,000 employees worldwide, MWV operates in 30 countries and serves customers in more than 100 nations. MWV manages all of its forestlands in accordance with internationally recognized forest certification standards, and has been named to the Dow Jones Sustainability World Index for the seventh consecutive year. For more information, please visit www.mwv.com.
About Cenveo
Cenveo, headquartered in Stamford, CT, is a leader in the management and distribution of print and related products and solutions. The Company provides its customers with low-cost alternatives within its core businesses of labels and forms manufacturing, packaging and publisher offerings, envelope production, and printing; supplying one-stop solutions from design through fulfillment. Cenveo delivers everyday for its customers through a network of production, fulfillment, content management, and distribution facilities across the globe. For more information, please visit www.cenveo.com.
Source: Press release.
