Cenveo Inc., the $1.8 billion envelope and commercial printer headquartered in Stamford, CT, USA, has entered the pharmaceutical label market with the acquisition of Rx Label Technology Corporation, of Joplin, MO, USA. Rx Label Technology, a pressure sensitive prescription label producer with $40 million in annual sales, had been a portfolio company of Pfingsten Partners and Hilco Equity Partners.
Rx Technology — its new name — has 120 employees and specializes in providing pharmacists with labels used to dispense prescription drugs to consumers. It utilizes simplex, duplex (both integrated and dual-web) and thermal roll processes. Its product line includes vinyl shelf labels, pricing labels, case labels, pallet labels, and returnable plastic container tags.The customer base includes several Fortune 500 companies in the mass merchant, drug store chain, grocery, and distributor business markets.
Robert Burton, Cenveo’s chairman and CEO, says that the acquisition creates “a platform for us to offer additional products to certain of our customers while simultaneously providing Rx Technology’s existing customers with the opportunity to benefit from Cenveo’s core products and services.”
The acquisition marks Cenveo’s shift to the growth phase of its turnaround plan, which called for the elimination of $75 million in costs by the end of 2006 through consolidation. It reduced its head count by nearly 2,000 employees, consolidated manufacturing plants, and sold off six non-core operations. The firm was taken over in September 2005 by Burton Capital Management following a six-month hostile takeover battle.
“With the acquisition of Rx Label, we continue to deliver on our commitment to grow the company both organically and through thoughtful, strategic acquisitions of quality companies in higher growth sectors of the printing marketplace,” says Burton.
Cenveo is one of North America’s largest providers of print and visual communications, with services from design through fulfillment. The company’s portfolio includes commercial printing, envelopes, labels, packaging, and business documents.