01.28.16
WestRock Company has completed its acquisition of Cenveo Packaging, a leading provider of value-add folded carton and litho-laminated display packaging solutions. Cenveo Packaging is a division of Cenveo, Inc.
Through this transaction, WestRock has acquired seven facilities in North America with capabilities including MiraFoil, cold foil and low migration ink systems.
"Cenveo Packaging is an excellent addition to our folding carton and merchandising displays business," says Craig Gunckel, executive vice president, Merchandising Displays and Folding Carton, Packaging Solutions, WestRock. "By combining WestRock paperboard with Cenveo's packaging and printing capabilities, we expect to be able to further enhance the solutions that we are able to provide to our customers."
The transaction is expected to generate significant synergies and be accretive to WestRock's earnings immediately.
Robert Burton, Sr., chairman and Cenveo's CEO, states: "We are pleased not only to complete the sale of our Packaging Business to WestRock, but also with our expected operating results for the fourth quarter. We saw solid performances by each of our operations, highlighted by continued margin expansion in our envelope segment as compared to the prior year. Additionally, we ended 2015 in an improved liquidity position, reflecting our cash flow generation capability during the last three months of the year. Finally, with the sale of the Packaging Business now complete, we will turn our attention to addressing our nearest bond maturities. I look forward to updating you further on our operating performance as well as our financing plans during our fourth quarter earnings call to be held next month."
Through this transaction, WestRock has acquired seven facilities in North America with capabilities including MiraFoil, cold foil and low migration ink systems.
"Cenveo Packaging is an excellent addition to our folding carton and merchandising displays business," says Craig Gunckel, executive vice president, Merchandising Displays and Folding Carton, Packaging Solutions, WestRock. "By combining WestRock paperboard with Cenveo's packaging and printing capabilities, we expect to be able to further enhance the solutions that we are able to provide to our customers."
The transaction is expected to generate significant synergies and be accretive to WestRock's earnings immediately.
Robert Burton, Sr., chairman and Cenveo's CEO, states: "We are pleased not only to complete the sale of our Packaging Business to WestRock, but also with our expected operating results for the fourth quarter. We saw solid performances by each of our operations, highlighted by continued margin expansion in our envelope segment as compared to the prior year. Additionally, we ended 2015 in an improved liquidity position, reflecting our cash flow generation capability during the last three months of the year. Finally, with the sale of the Packaging Business now complete, we will turn our attention to addressing our nearest bond maturities. I look forward to updating you further on our operating performance as well as our financing plans during our fourth quarter earnings call to be held next month."