|By Business Wire||
|September 19, 2012 01:07 PM EDT||
Vertis Holdings, Inc. (“Vertis”) and SGS International, Inc. (“SGS”) today announced an agreement through which SGS will further augment its complete, design-to-print packaging solutions with the purchase of additional prepress packaging equipment, data files and certain related assets from Vertis.
Proceeds from the sale of these assets will allow Vertis to strengthen its overall liquidity position and further invest in its core Direct Marketing, Advertising Inserts and Large Format businesses. Vertis expects to immediately invest in a new EFI GS 5000 printer, which will expand its Large Format capacity to better meet clients’ growing demand for these products, as well as new HP and Kodak ink jet heads for its Direct Marketing business.
Vertis had previously announced its intention to exit the prepress packaging business in order to focus on growing its core businesses.
“Vertis exceeded our consolidated year-to-date EBITDA projections by more than 60 percent as of July 31, driven by a series of successful operational advancements and increased client volumes,” said Gerald Sokol, Jr., Chief Executive Officer of Vertis. “Building on these achievements and bolstered by the additional liquidity infusion we received as a result of our decision to exit our prepress packaging business, we continue to take steps to position our businesses for ongoing growth and success. We thank our prepress packaging employees and clients for their loyalty and wish them well in their future endeavors.”
Hank Baughman, President and Chief Executive Officer of SGS, stated, “SGS provides critical services that ensure customers are able to obtain or produce consistent, high quality packaging materials. We look forward to continuing to expand our business through this transaction to better serve our customers.”
About SGS International, Inc.
SGS International is a global leader in the digital imaging industry. SGS offers design-to-print graphic services to the international consumer products packaging industry primarily in North America, Europe and Asia. SGS provides a full spectrum of innovative digital solutions that streamline the capture, management, execution, and distribution of graphics information. Brand development, creative design, prepress, image carriers and print support services are utilized in each of the three main printing processes: flexography, gravure and lithography. The company provides critical services that ensure customers are able to obtain or produce consistent, high quality packaging materials often on short turnaround times. To learn more about SGS, please visit www.sgsintl.com.
Vertis is a results-driven marketing communications company that delivers inventive advertising, direct marketing and interactive solutions to prominent brands across North America. Our deep industry knowledge and extensive range of offerings—including integrated data solutions, digital program management systems, creative services, world-class print and mail production, logistics, out-of-home and business process outsourcing—are used to deliver superior program performance that drives bottom line results for our clients.
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