Exhibit 99.1
[CENVEO logo]
NEWS RELEASE
CENVEO, INC. ACQUIRES RX LABEL TECHNOLOGY CORPORATION
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Acquires leading manufacturer of prescription labels
Significantly strengthens Cenveo's position in high growth label segment
Transaction expected to be accretive to 2006 earnings
STAMFORD, CT - (JULY 12, 2006) - Robert G. Burton, Sr., Chairman and Chief
Executive Officer of Cenveo, Inc. (NYSE: CVO), announced today that the
Company has acquired Rx Label Technology Corporation ("Rx Label"), a
portfolio company of Pfingsten Partners, LLC and Hilco Equity Partners,
L.P., in an all cash transaction. As the market leader in the production of
pressure sensitive prescription labels to the U.S. retail pharmacy market,
Rx Label generates annual revenues of approximately $40 million. The
transaction is expected to be accretive to earnings in 2006. Terms of the
transaction were not disclosed.
Rx Label, which will operate under the name "Rx Technology," operates from a
state-of-the-art facility located in Joplin, MO. The 120-employee company is
a customer-focused, quality-driven organization with a successful operating
history. Specializing in providing pharmacists with labels used to dispense
prescription drugs to consumers, Rx Label is the only label converter with
the capabilities to produce all three prescription label technologies:
simplex, duplex (both integrated and dual-web) and thermal roll. In
addition, Rx Label's product line includes vinyl shelf labels, pricing
labels, case labels, pallet labels and returnable plastic container (RPC)
tags. Its premier customer base includes several Fortune 500 companies in
the mass merchant, drug store chain, grocery, and distributor business
markets.
Mr. Burton stated: "The acquisition of Rx Label marks an important milestone
as we now begin the growth phase of our plan to transform Cenveo into the
world's premier printing company. This acquisition, the 56th of my business
career, brings Cenveo into the high growth pharmaceutical label market and
is expected to be accretive to earnings this year. The acquisition will also
create a platform for us to offer additional products to certain of our
customers while simultaneously providing Rx Label's existing customers with
the opportunity to benefit from Cenveo's core products and services. I look
forward to a swift integration of this transaction and I welcome Rx Label to
the Cenveo family."
Mr. Burton concluded: "We continue to execute on the plan we initiated when
we came to Cenveo. With the acquisition of Rx Label, we continue to deliver
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on our commitment to grow the Company both organically and through
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thoughtful, strategic acquisitions of quality companies in higher growth
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sectors of the printing marketplace. This transaction, coupled with our
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successful debt re-financing last month, furthers the strong momentum that
we are experiencing operationally. I look forward to discussing with our
shareholders all of the Company's results on our 2nd Quarter conference call
on August 10th."
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CENVEO IS ONE OF NORTH AMERICA'S LEADING PROVIDERS OF PRINT AND VISUAL
COMMUNICATIONS, WITH ONE-STOP SERVICES FROM DESIGN THROUGH FULFILLMENT. THE
COMPANY'S BROAD PORTFOLIO OF SERVICES AND PRODUCTS INCLUDE COMMERCIAL
PRINTING, ENVELOPES, LABELS, PACKAGING AND BUSINESS DOCUMENTS DELIVERED
THROUGH A NETWORK OF PRODUCTION, FULFILLMENT AND DISTRIBUTION FACILITIES
THROUGHOUT NORTH AMERICA.
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Statements made in this release, other than those concerning historical
financial information, may be considered forward-looking statements, which
speak only as of the date of this release and are based upon current
expectations and involve a number of assumptions, risks and uncertainties
that could cause the actual result to differ materially from such
forward-looking statements. Those assumptions, risks and uncertainties
include, without limitation: (1) uncertainties regarding future growth and
our ability to successfully integrate acquisitions: (2) substantial
indebtedness impairing our financial condition and limiting our ability to
incur additional debt; (3) indebtedness imposing significant restrictions on
our business; (4) additional indebtedness
exacerbating the above factors; (5) debt instruments providing cross
defaults causing all debt to become due and payable as a result of a default
under an unrelated debt instrument; (6) our history of losses and uncertain
return to consistent profitability; (7) the absence of long-term customer
agreements in our industry, subjecting our business to fluctuations; (8)
factors affecting the U.S. postal services; (9) increases in paper costs and
decreases in its availability; (10) availability of alternative delivery
media; (11) intense competition; (12) supply, availability, and costs of raw
materials and components; (13) fires or explosions at any of the Company's
facilities; (14) environmental rules and regulations, non-compliance with
which may expose the Company to adverse consequences; (15) acquisitions that
might be unsuccessful; (16) contract pricing and timing of awards; (17)
changing economic and political conditions in the U.S. and in other
countries; (18) dependence on key management personnel; (19) customer
product acceptance; (20) continued access to technical and capital
resources; (21) availability of insurance coverage at acceptable terms; (22)
changes in accounting or tax rules or pronouncements; (23) actual pension
asset returns and assumptions regarding future returns, discount rates, and
service costs; (24) changes in cost estimates related to restructuring or
relocation of facilities; (25) the timing and extent of changes in interest
rates; (26) access to capital markets and the costs thereof; (27) legal
proceedings; and (28) other economic, political, and technological risks and
uncertainties.
This list of factors is not exhaustive, and new factors may emerge or
changes to the foregoing factors may occur that would impact the Company's
business. Additional information regarding these and other factors may be
contained in the Parent's filings with the SEC. All such risk factors are
difficult to predict, contain material uncertainties that may affect actual
results and may be beyond the Company's control.
These risks and uncertainties are set forth under Item 1 and Item 1A, Risk
Factors, in Cenveo's Annual Report on Form 10-K for the fiscal year ended
December 31, 2005, and Cenveo's other SEC filings. A copy of the Annual
Report is available at http://www.cenveo.com.
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Inquiries from analysts and investors should be directed to Robert G.
Burton, Jr. at (203) 595-3005.