Cimpress (asi/162149) has announced a deal to acquire Top 40 distributor National Pen (asi/281040). Under the terms of the agreement, Cimpress (which owns Vistaprint) will acquire 100% of the outstanding equity interests of National Pen for a purchase price of approximately $218 million. Cimpress anticipates the transaction will be finalized by the end of this month. Based on Cimpress estimates, National Pen’s revenue is expected to be approximately $275 million for 2016.
“National Pen is a clear leader in one of the key promotional product segments and has excellent manufacturing and supply chain capabilities which we do not have today,” said Robert Keane, president and CEO of Cimpress. “By combining the company’s capabilities and expertise with those of Cimpress, we are confident we can help to grow both National Pen and the promotional products offering of our existing portfolio of brands.”
A Cimpress spokesperson confirmed to Counselor that National Pen “will continue to go to market as it does today and will operate with a high degree of autonomy.” The company will remain in its headquarters in San Diego as well as its additional locations in the United States. It also operates sites in Mexico, Ireland and France.
Cimpress plans to introduce the National Pen product range to Vistaprint customers as well as the company’s other e-commerce brands. Likewise, National Pen will also gain access to products and production capabilities offered through Cimpress brands.
“We believe our industry is at the beginning of a period of disruptive shift to e-commerce, and we are thrilled about the opportunities that joining Cimpress will create for our customers and team members,” said Peter Kelly, president and CEO of National Pen, who will remain in that role. “We expect our business to thrive as part of Cimpress.”
Keane highlighted National Pen’s ability to create customized writing instruments at low quantities – dovetailing with Cimpress and Vistaprint’s focus on selling customized products at low volumes.
The acquisition includes Goldstar (asi/73295), a supplier of writing instruments and other products that is a subsidiary of National Pen. Goldstar will “continue to be run separately as it is today,” said the spokesperson.
National Pen is the 10th-largest distributor in the industry with $150 million in North American promotional product revenue. The company was purchased in 2012 by private equity firm Lincolnshire Management.
Cimpress generated $1.78 billion in fiscal year 2016 revenue, with 20% year-over-year growth. Vistaprint accounted for $1.22 billion in revenue for the fiscal year, growing 6% over the previous year. Don Leblanc, president of Vistaprint Corporate Solutions, debuted this year on the Counselor Power 50 list and ranks 19th.