In a Nutshell
*Top 40 supplier Ennis, Inc. (asi/52493) says that the acquisition helps empower the company to continue being the “preeminent provider” of printed products and services on the West Coast.
*The stock merger transaction is expected to close on or before September 30.
Top 40 supplier Ennis, Inc. (asi/52493) announced Tuesday that it had signed an agreement to merge Portland, OR-based Wright Business Graphics with a wholly-owned entity of Ennis. The stock merger transaction is expected to close Sept. 30, pending final approvals. While the exact purchase price wasn’t immediately available, Ennis said the payment will be 55% in cash and 45% in stock, with the stock based on Ennis’ weighted average share price for its common stock for the previous 30 days.
“We are delighted to have the opportunity to combine the Wright organization with the other operations of Ennis,” said Keith Walters, chairman, president and CEO of Ennis. “With this acquisition we will continue to be the preeminent provider of all types of printed products and services to the West Coast.”
With seven locations in Oregon, California and Washington, Wright generated approximately $58 million in sales for its fiscal year ended March 31, 2018. In 1970, majority stockholder Jim Wright founded the company, which produces forms, pressure seal, packaging, direct mail, checks, statement processing and commercial printing. “The addition of packaging, statement processing and direct mail will add to the overall capabilities of our existing operations, which should help us to continue to penetrate additional markets throughout the United States,” said Walters, noting that Ennis believes the transaction with Wright will be accretive to Ennis shareholders.
Selling primarily through distributors and resellers, Wright Business Graphics will continue normal operations in all of its current locations, Ennis said in a statement. Dan Adkison will remain president/COO of Wright. The company will continue to go to market as Wright Business Graphics.