Ennis Signs Asset Purchase Agreement for Sovereign Business Forms Plants
Ennis Inc., Midlothian, Texas, today announced that two of its subsidiary companies have entered into a definitive agreement to acquire substantially all of the assets of Sovereign Business Forms Inc. and five related entities:
- TRI-C Business Forms Inc. in Houston
- Falcon Business Forms Inc. in Corsicana, Texas
- Forms Manufacturers Inc. in Girard, Kan.
- Mutual Graphics Inc. in Knoxville, Tenn.
- Curtis Business Forms Inc. in Holyoke, Mass.
The closing, which is expected to be on or before June 16, 2014, is subject to the completion of customary due diligence and customary conditions to closing. Sales from the businesses totaled approximately $27.1 million in calendar year 2013. The company expects that the businesses will continue to operate under their existing trade names and remain in their existing locations. The company believes that the acquisition will be accretive to earnings in the current year.
"We are very pleased to add these five brands and locations to the Ennis family. These facilities produce traditional business forms and allow us to expand into the Houston market and the New England marketplace. The other three markets supplement our existing locations nearby," said Keith Walters, chairman, chief executive officer and president of Ennis Inc. "These products are sold through our customary sales channel of independent distributors, and should complement our current business model. With these acquisitions we are close to operating 50 print locations throughout the United States."
For more information, visit www.ennis.com.