The sale involves six facilities located in the U.S., Canada and Dominican Republic along with strategic sourcing partnerships in Asia and the Caribbean that provide folded carton, shrink sleeve and lithographic laminated display packaging solutions ("packaging business").
Robert G. Burton, Sr., Chairman and CEO stated: "The agreement brings conclusion to the review process of our Packaging Business which we started in the summer of 2015. The sale allows the Company to focus management's efforts on its core operations, specifically our envelopes, labels, and commercial print segments where we hold leading market positions. The transaction will generate significant cash for the Company, an important step in our stated plan to deleverage our balance sheet, improve cash flows, and address certain debt maturities. Additionally, the agreement is expected to provide the Company access to one of the leading global packaging companies in the United States via a proposed commercial arrangement."
The cash purchase price for the packaging business is approximately $105 million, subject to certain adjustments set forth in the agreement. The transaction is subject to regulatory approval and is expected to close in early 2016.
WestRock Company is a leading provider of paper and packaging solutions in consumer and corrugated markets globally.
Cenveo is a leading global provider of print and related resources, offering world-class solutions in the areas of custom labels,envelopes, commercial print, content management and publisher solutions.
