STAMFORD, CT—Cenveo Inc. has signed a letter of intent to sell the assets and equipment of its bindery division at Cenveo-St. Louis to an undisclosed party, the general manager of that facility told the St. Louis Business Journal. The move could result in the reduction of 65 jobs there.
Printing company Cenveo Inc. may sell the assets and equipment of its bindery division, and if the deal goes through, would reduce its work force by 65 employees. Stamford, Conn.-based Cenveo has a letter of intent to sell the assets of its bindery business, which makes catalogs and books, to an undisclosed buyer, said Mike Denny, general manager of Cenveo-St. Louis.
If the sale is cemented, Cenveo could lay off 65 of its 208 local employees on Jan. 29. Denny disclosed the possibility to Missouri officials earlier this month to comply with the federal Worker Adjustment and Retraining
STAMFORD, CT—MeadWestvaco Corp. (MWV) has agreed to sell its Envelope Products Group to Cenveo Inc., based here. The divestiture of the Envelope Products Group, which is part of MWV's Consumer & Office Products business, 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.
It is not surprising to note that much of the commercial printing industry news in 2010 was dominated by the continuing struggle of printers trying to reconcile employee ranks with dwindling press hours. White-collar crime was rampant and, in some instances, theft indirectly led to closures.
While many magazine and catalog printers have reported some improvement in their sectors since 2009, economic and industry uncertainty still carried its weight into 2010. Reduction in advertising pages, a migration to digital alternatives, and the rising cost of postage and paper have remained key issues.
With publicly held companies on the 2010 Printing Impressions 400 reporting sales declines for their most recently completed fiscal years, pay levels for the principal officers at these large firms didn't necessarily follow suit. For most of the executives appearing here, their overall salaries were up significantly.
“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. The company also announced it has acquired Gilbreth Packaging Solutions.
For the three months ended Oct. 2, 2010, its net sales increased approximately 1.6 percent to $455.1 million, as compared to $448.0 million in the third quarter of 2009, primarily due to the Nashua acquisition. For the nine months ended Oct. 2, 2010, net sales increased approximately 7.7 percent to $1.4 billion, as compared to $1.3 billion in 2009.
Cenveo Inc. withdrew from the bidding process for National Envelope (NEC), which was sold at auction to Gores Group for $208 million. Robert Burton, chairman and CEO of Cenveo, ultimately felt the parameters of the deal were not in the best interest of his company.
Commercial Printing News from Printing Impressions’ October 2010 edition, featuring items on Southeast Mail Service and Ries Graphics.
