10 December 2015
Cenveo sells packaging business to WestRock
STAMFORD, CONN—Cenveo, Inc., its wholly-owned subsidiary, Cenveo Corporation, and certain other of its subsidiaries, has entered into an agreement to sell its packaging business to a division of the WestRock company. WestRock is a paper and packaging provider in the consumer and corrugated markets.
 


The sale will involve six facilities located in the U.S., Canada (McLaren Morris and Todd Company - A Cenveo Company) and the Dominican Republic, as well as strategic sourcing partnerships in Asia and the Caribbean.

“The agreement brings conclusion to the review process of our packaging business which we started in the summer of 2015," Robert G. Burton, Sr., chairman and CEO, said. "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 and is subject to certain adjustments set forth in the agreement. The transaction is subject to regulatory approval and is expected to close in early 2016.

Barclays acted as the exclusive financial advisor and Hughes Hubbard & Reed acted as legal advisor to the company.
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