Cenveo agrees to sell its packaging business to WestRock

Cenveo (Stamford, CT) has entered into an agreement to sell the company’s packaging business to a division of WestRock Company (Richmond, VA), a leading global provider of paper and packaging solutions in the consumer and corrugated markets. The sale involves six facilities located in Canada, the U.S. and the Dominican Republic, along with strategic sourcing partnerships in Asia and the Caribbean that provide folded carton, shrink sleeve and lithographic laminated display packaging solutions. Cenveo is a world leader in the management and distribution of print and related products. It’s a $2-billion company that encompasses over 24 entities in over 100 facilities across the U.S., as well as manufacturing operations in Asia, South America and Central America. U.S.-based packaging giant WestRock has about 275 operating and business locations in 30 countries and employs about 42,000 people.

“The agreement brings conclusion to the review process of our packaging business which we started in the summer of 2015,” said Robert G. Burton Senior, Cenveo Chairman and Chief Executive Officer. “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 de-leverage 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.