Ennis to Acquire Crabar/GBF for $18 Million
Ennis, formerly Ennis Business Forms, a manufacturer of printed business products headquartered in Midlothian, Texas, and Centrum Equities, a privately held company based in Chicago, have entered into a definitive agreement to sell 100 percent of the stock of Crabar/GBF, Dayton, Ohio, to Ennis for $18 million in cash less debt assumed.
The acquisition of Crabar/GBF, along with the separately announced merger with Alstyle Apparel, a privately held manufacturer of T-shirts and fleece based in Anaheim, Calif., expands Ennis' strategy of growth through related manufactured products. Furthermore, the acquisition will add long- and medium-run print production, pressure-sensitive labels and form/label combinations to Ennis' current line of medium- and short-run print products and solutions, financial documents, print fulfillment, labels, collateral materials, POP commercial printing, forms and logistics services, and promotional products.
The transaction is expected to be accretive to Ennis' earnings in the first full year of operations. In addition to significantly enhancing revenue, it expands Ennis' geographic presence in the United States and its product capability in the forms marketplace. Crabar/GBF has operating facilities in Cerritos, Calif., Bellville, Texas, Princeton, Ill., Medfield, Mass., Edison, N.J., El Dorado, Mo. and Leipsic, Ohio. Roger Brown, president and CEO of Crabar/GBF, will continue to be active in the forms industry, exploring possible transactions on behalf of Ennis.
Keith Walters, chairman, president and CEO of Ennis, said, "This is another positive step forward in the continued growth and consolidation of the forms business for Ennis. The transaction will place Ennis among the top players in the forms and printed products arena—serving 40,000 independent distributors and printers who comprise the largest share of the forms marketplace. It is great news for our customers, employees and shareholders."
Headquartered in Midlothian, Texas, Ennis has 30 production facilities located in 12 states. Together with its subsidiaries, Ennis operates three business segments, including the Forms Solutions Group, the Promotional Solutions Group and the Financial Solutions Group.