Cenveo Completes Sale of Packaging Business to WestRock Converting

Cenveo Inc., Stamford, Conn., USA, this week announced that it has completed the previously disclosed sale of its packaging business to WestRock Converting Co.

Robert G. Burton Sr., chairman and CEO, said that "we are pleased not only to complete the sale of our packaging business to WestRock, but also with our expected operating results for the fourth quarter. We saw solid performances by each of our operations, highlighted by continued margin expansion in our envelope segment compared with the prior year. Additionally, we ended 2015 in an improved liquidity position, reflecting our cash flow generation capability during the last three months of the year. Finally, with the sale of the packaging business now complete, we will turn our attention to addressing our nearest bond maturities. I look forward to updating you further on our operating performance as well as our financing plans during our fourth quarter earnings call to be held next month."

Cenveo also announced that on January 19, it received notice from the New York Stock Exchange that it does not presently satisfy the NYSE's continued listing standard requiring the average closing price of the company's common stock to be at least $1.00 per share for 30 consecutive trading days. The notice has no immediate impact on the listing of the company's common stock. In accordance with the NYSE rules, the company will respond to the notice within 10 business days of its receipt as to how Cenveo intends to cure the deficiency and return to full compliance with the NYSE continued listing standards. 

The company will actively monitor its stock price and evaluate all available options to regain that compliance within the prescribed six-month time frame. During that six-month period, the company's common stock will continue to be listed and traded on the NYSE, subject to compliance with other continued listing standards. The deficiency does not affect the company's ongoing business operations or its SEC reporting requirements.

"While the recent significant volatility across the global financial markets, along with other factors, has negatively impacted our share price, we remain confident that our plan will create value over the long term. The completion of the sale of the packaging business and our stronger fourth quarter results were important pieces to that plan and reflect some of the momentum that we are seeing towards achieving that plan. Further, we intend to fully satisfy our listing deficiency as soon as practical and within the required time frame," Burton said.