MIDLOTHIAN, Texas-Wholesale printing and apparel manufacturer Ennis Inc. announces the sale of the apparel division, Alstyle Apparel, to Alstyle Operations LLC. The news of the sale was released on April 4, 2016, as part of a detailed press release which also disclosed fiscal year-end financial information for Ennis. The company reports the sale of Alstyle Apparel totaling $88 million through a 60-month capital lease.
“Given our strategic direction to focus on the further expansion of our print segment, the apparel segment was deemed to be a non-core asset,” explains Keith Walters, CEO of Ennis. “The sale of this non-core asset allows us to fully focus on our core business segment and to be able to utilize the cash from the sale of Alstyle Apparel to further expand this business segment through strategic acquisitions, through which we have been able to continually demonstrate excellent returns to our shareholders.”
Ennis projects the sale to be completed by the end of April 2016 after a customary waiting period. The purchase agreement includes a “no-shop” provision prohibiting Ennis from soliciting third-party proposals for the acquisition of Alstyle Apparel and the company’s apparel division. It does allow the company to respond to unsolicited proposals and terminate the agreement to accept an unsolicited proposal by paying a $3 million termination fee to the Alstyle Operations.
For more information on Ennis Inc., visit: http://www.ennis.com/
For more information on Alstyle Apparel, visit: https://www.alstyle.com/main.aspx