WestRock acquires Cenveo Packaging for $105m
Cenveo Packaging distributes folded cartons for firms including Quaker Oats and litho-laminated display packaging, such as MiraFoil, cold foil and low migration ink systems.
Review process started in summer 2015
Robert Burton, CEO, Cenveo Packaging said the agreement concludes the review process of its packaging business which it started in summer 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,” he said.
“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 US via a proposed commercial arrangement.”
Burton added the recent significant volatility across the global financial markets along with other factors had negatively impacted its share price but with the completed sale and stronger fourth quarter results it was seeing some momentum to achieving its plans.
Craig Gunckel, executive VP, Merchandising Displays and Folding Carton, Packaging Solutions, WestRock, said Cenveo Packaging was an excellent addition to its folding carton and merchandising displays business.
“By combining WestRock paperboard with Cenveo’s packaging and printing capabilities, we expect to be able to further enhance the solutions we are able to provide to our customers,” he added.
New York Stock Exchange
Cenveo Packaging announced on January 19, 2016, it received notice from the New York Stock Exchange, that it does not presently satisfy the NYSE’s continued listing standard requiring the average closing price of the company’s common stock to be at least $1.00 per share for 30 consecutive trading days.
The notice has no immediate impact on the listing of the company’s common stock.
In accordance with the NYSE rules, it will respond to the notice within 10 business days of its receipt as to how it intends to cure the deficiency and return to full compliance with the NYSE continued listing standards.
Cenveo said it will actively monitor its stock price and evaluate all available options to regain compliance within the prescribed six-month timeframe.
During that six-month period, the company’s common stock will continue to be listed and traded on the NYSE, subject to compliance with other continued listing standards.
The deficiency does not affect the firm’s ongoing business operations or its SEC reporting requirements.
