Ennis Signs Asset Purchase Agreement for Sovereign Business Forms Plants
Midlothian, TX – June 3, 2014 – Ennis, Inc. (the “Company”) (NYSE: EBF), today announced that two of its subsidiary companies have entered into a definitive agreement to acquire substantially all of the assets of Sovereign Business Forms, Inc. and five related entities:
TRI-C Business Forms, Inc. in Houston, Texas
Falcon Business Forms, Inc. in Corsicana, Texas
Forms Manufacturers, Inc. in Girard, Kansas
Mutual Graphics, Inc. in Knoxville, Tennessee
Curtis Business Forms, Inc. in Holyoke, Massachusetts
The closing, which is expected to be on or before June 16, 2014, is subject to the completion of customary due diligence and customary conditions to closing. Sales from the businesses totaled approximately $27.1 million in calendar year 2013. The Company expects that the businesses will continue to operate under their existing trade names and remain in their existing locations. The Company believes that the acquisition will be accretive to earnings in the current year.
Keith Walters, Chairman, Chief Executive Officer and President of Ennis, Inc., commented, “We are very pleased to add these five brands and locations to the Ennis family. These facilities produce traditional business forms and allow us to expand into the Houston market and the New England marketplace. The other three markets supplement our existing locations nearby. These products are sold through our customary sales channel of independent distributors, and should complement our current business model. With these acquisitions we are close to operating 50 print locations throughout the United States.”
Ennis, Inc. (www.ennis.com) is primarily engaged in the production of and sale of business forms, apparel and other business products. The Company is one of the largest private-label printed business product suppliers in the United States. Headquartered in Midlothian, Texas, the Company has production and distribution facilities strategically located throughout the United States of America, Mexico and Canada, to serve the Company’s national network of distributors. The Company, together with its subsidiaries, operates in two business segments: the Print Segment (“Print”) and Apparel Segment (“Apparel”). The Print Segment is primarily engaged in the business of manufacturing and selling business forms, other printed business products, printed and electronic media, presentation products, flex-o-graphic printing, advertising specialties and Post-it Notes, internal bank forms, plastic cards, secure and negotiable documents, envelopes and other custom products. The Apparel Segment manufactures T-Shirts and distributes T-Shirts and other active-wear apparel through nine distribution centers located throughout North America.
Safe Harbor Under The Private Securities Litigation Reform Act of 1995
Certain statements contained in this press release that are not historical facts are forward-looking statements that involve a number of known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. The words”anticipate,” “preliminary,” “expect,” “believe,” “intend” and similar expressions identify forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for such forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. These statements are subject to numerous uncertainties, which include, but are not limited to, the Company’s ability to effectively manage its business functions while growing its business in a rapidly changing environment, the Company’s ability to adapt and expand its services in such an environment, the variability in the prices of paper and other raw materials. Other important information regarding factors that may affect the Company’s future performance is included in the public reports that the Company files with the Securities and Exchange Commission. The Company undertakes no obligation to revise any forward-looking statements or to update them to reflect events or circumstances occurring after the date of this release, or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The inclusion of any statement in this release does not constitute an admission by the Company or any other person that the events or circumstances described in such statement are material.
For Further Information Contact:
Mr. Keith S. Walters, Chairman, Chief Executive Officer and President
Mr. Richard L. Travis, Jr., CFO, Treasurer and Principal Financial and Accounting Officer
Mr. Michael D. Magill, Executive Vice President and Secretary