Mail-Well sells label division
business to a US-based business syndicate.
US-based envelope maker Mail-Well has sold its adhesive label business to a US-based business syndicate.
The label business' name will be changed to Renaissance Mark, with Greg Mosher, one of the syndicate's business partners, serving as chief executive officer.
No immediate employment or operation changes will be made in the label business, said Mosher spokesman Steven Silvers.
"It will be operations as usual," Silvers said. "The idea is to grow the company. Greg and (existing) management will be looking for opportunities for new acquisitions and new technologies."
The label unit has 1,500 employees in 15 facilities, including 10 in the United States, one each in Canada and Mexico, and three in the United Kingdom. The business had revenues last year of $220 million (€239m), which were primarily derived from sales of adhesive and film labels to the food and beverage industry.
The sale of the label operation is part of Mail-Well's strategy to focus on its envelope and commercial printing businesses, while selling smaller label and printed office-products units. The company has said it wants to reduce debt and increase earnings by 15 per cent to 20 per cent a year during the next five years.
Silvers said Mosher has not decided where the label business will be headquartered.
Locations being considered include Denver, Chicago, San Francisco and undisclosed cities in the eastern US.
