Exhibit 99.1
[Cenveo logo]
NEWS RELEASE
CENVEO TO ACQUIRE COLORGRAPHICS
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Making Cenveo the leading West Coast commercial printer
Transaction expected to be accretive to earnings
STAMFORD, CT- (JUNE 14, 2007) - Cenveo, Inc. (NYSE: CVO) announced today the
signing of a definitive merger agreement pursuant to which Cenveo will acquire
Madison/Graham ColorGraphics, Inc. ("ColorGraphics"), of Los Angeles, CA.
ColorGraphics is one of the largest printers in the western United States with
approximately $170 million in revenues. The transaction is projected to be
completed in July and is expected to be accretive to earnings. Chris Madison,
the senior executive and President of ColorGraphics, will remain with the
company following the acquisition. The transaction is also subject to other
conditions, which were not disclosed.
ColorGraphics operates four strategically located state-of-the-art facilities
across the west coast in Los Angeles, San Francisco, Seattle and Orange
County, with a highly-skilled and talented workforce of approximately 400
employees. It is considered one of the country's finest commercial printers
and has generated a stellar reputation and client list since its foundation in
1957. Recognized for producing high quality annual reports, car books,
catalogs and other corporate communication materials, ColorGraphics has been
the recipient of numerous awards for outstanding quality. ColorGraphics is one
of the few printing companies on the west coast to be awarded the forest
stewardship council (FSC) chain of custody certification.
ROBERT G. BURTON, CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CENVEO, STATED:
"The acquisition of ColorGraphics provides a perfect complement to Cenveo's
existing West Coast commercial operations, and will firmly position Cenveo as
the premier West Coast commercial printer. Expanding our capabilities in this
market sector will allow our
customers to benefit from our combined printing experience and additional
resources. ColorGraphics' great reputation and Cenveo's respected
craftsmanship are an exceptional fit that will benefit customers, employees
and shareholders."
CHRIS MADISON, COLORGRAPHICS PRESIDENT, STATED:
"We are eager to become a part of the Cenveo team. We are looking forward to
the benefits our combined companies will share; the strengths of a large
company with the responsiveness of a local printer. Cenveo has an excellent
reputation in the printing industry and an executive team driven to make the
company successful. The acquisition of ColorGraphics can only further that
reputation."
MR. BURTON CONCLUDED:
"We continue to execute on our plan to make strategic and thoughtful
acquisitions of high quality niche companies in high growth areas of the
printing industry. The acquisition of ColorGraphics is strategically
advantageous to Cenveo as it adds considerable strength to our west coast
operations. We will continue to acquire strong and respected companies like
ColorGraphics to our printing family. I look forward to working with Chris and
his team, and I look forward to a swift completion of this transaction. "
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CENVEO (NYSE:CVO), HEADQUARTERED IN STAMFORD, CONNECTICUT, IS A LEADER IN THE
MANAGEMENT AND DISTRIBUTION OF PRINT AND RELATED PRODUCTS AND SERVICES. THE
COMPANY PROVIDES ITS CUSTOMERS WITH LOW-COST SOLUTIONS WITHIN ITS CORE
BUSINESS OF COMMERCIAL PRINTING AND PACKAGING, ENVELOPE, FORM, AND LABEL
MANUFACTURING, AND PUBLISHER SERVICES; OFFERING ONE-STOP SERVICES FROM DESIGN
THROUGH FULFILLMENT. WITH 10,000 EMPLOYEES WORLDWIDE, CENVEO DELIVERS EVERYDAY
FOR ITS CUSTOMERS THROUGH A NETWORK OF PRODUCTION, FULFILLMENT, CONTENT
MANAGEMENT, AND DISTRIBUTION FACILITIES ACROSS THE GLOBE. FOR MORE INFORMATION
PLEASE VISIT US AT WWW.CENVEO.COM.
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Statements made in this release, other than those concerning historical
financial information, may be considered "forward-looking statements," which
are based upon current expectations and involve a number of assumptions, risks
and uncertainties that could cause the actual results to differ materially
from such forward-looking statements. In view of such uncertainties, investors
should not place undue reliance on our forward-looking statements. Such
statements speak only as of the date of this release, and we undertake no
obligation to update any forward-looking
statements made herein. Factors that could cause actual results to differ
materially from management's expectations include, without limitation: (1) our
substantial indebtedness impairing our financial condition and limiting our
ability to incur additional debt; (2) the terms of our indebtedness imposing
significant restrictions on our operating and financial flexibility; (3) the
potential to incur additional indebtedness, exacerbating the above factors;
(4) cross default provisions in our indebtedness, which could cause all of our
debt to become due and payable as a result of a default under an unrelated
debt instrument; (5) our ability to successfully integrate acquisitions; (6)
intense competition in our industry; (7) the absence of long-term customer
agreements in our industry, subjecting our business to fluctuations; (8)
factors affecting the U.S. postal services impacting demand for our products;
(9) increases in paper costs and decreases in its availability; (10) our
history of losses and ability to return to consistent profitability; (11) the
availability of the Internet and other electronic media affecting demand for
our products; (12) our labor relations; (13) compliance with environmental
rules and regulations; (14) dependence on key management personnel; and (15)
general economic, business and labor conditions. 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 can be found in Cenveo, Inc.'s periodic
filings with the SEC, which are available at http://www.cenveo.com.
Inquiries from analysts and investors should be directed to Robert G. Burton,
Jr. at (203) 595-3005.