Ennis Inc., Midlothian, Texas, announced the signing of a share purchase agreement to acquire all the outstanding stock of The Flesh Company and its wholly owned subsidiary, Impressions Direct Inc. The closing will occur on July 15, 2019, but the transfer of ownership for the transactions contemplated by this agreement will be deemed for all purposes (including without limitation, title, possession, financial reporting and tax purposes) as of 11:59 p.m. Dallas time on July 13, 2019.
The Flesh Company is a printing company with two locations. The St. Louis, Mo., location contains its corporate office and direct mail operations; and its Parsons, Kan., location has its main manufacturing facility and warehouse.
Ennis will buy the stock for cash, and the price is subject to certain working capital and escrow adjustments. Additional consideration in the form of an earn-out is also being established. The Flesh Company had approximately $31.1 million in sales for the 12 months ended Sept. 30, 2018, and sells mainly to distributors and resellers. Ennis believes the transaction will be accretive to its shareholders.
“We are delighted to have the opportunity to combine the Flesh organization with the other operations of Ennis,” said Ennis chairman, president and CEO Keith Walters. “The Flesh Company is truly regarded as one of the outstanding companies in the print industry with a heritage that dates back for more than 100 years. They provide business forms, checks, direct mail services, integrated products and labels. The addition of direct mail will continue to add to the capabilities we added with the recent acquisitions of Wright Business Graphics on the West Coast and Integrated Print Graphics in Chicago, as well as expanding our integrated products and label capabilities.”
The operations will continue to operate as The Flesh Company and related brand names. All of the facilities will continue their normal operations in their current locations.
For more information on Ennis Inc., visit www.ennis.com.
