Ennis, Inc. to be Acquired by Atlas Holdings LLC

Ticker: EBF · Form: 8-K · Filed: Sep 23, 2024 · CIK: 33002

Sentiment: neutral

Topics: acquisition, merger, business-operations

TL;DR

Ennis is getting bought by Atlas Holdings!

AI Summary

Ennis, Inc. announced on September 20, 2024, that it has entered into a definitive agreement to be acquired by an affiliate of Atlas Holdings LLC. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions. Ennis, Inc. is a leading manufacturer of specialty printed business products. The acquisition price was not disclosed in this filing.

Why It Matters

This acquisition by Atlas Holdings LLC signifies a major change in ownership for Ennis, Inc., potentially impacting its strategic direction and operations.

Risk Assessment

Risk Level: medium — The acquisition introduces uncertainty regarding future operations and potential integration challenges, though the deal is subject to closing conditions.

Key Players & Entities

FAQ

What is the name of the acquiring company?

The acquiring company is an affiliate of Atlas Holdings LLC.

When was the definitive agreement for the acquisition signed?

The definitive agreement was signed on September 20, 2024.

When is the acquisition expected to close?

The acquisition is expected to close in the fourth quarter of 2024.

What type of business is Ennis, Inc.?

Ennis, Inc. is a leading manufacturer of specialty printed business products.

Are there any specific financial terms disclosed for the acquisition?

No, the acquisition price was not disclosed in this filing.

Filing Stats: 798 words · 3 min read · ~3 pages · Grade level 9.9 · Accepted 2024-09-23 11:56:21

Key Financial Figures

Filing Documents

02 Results of Operations and Financial Condition

Item 2.02 Results of Operations and Financial Condition. On September 23, 2024, Ennis, Inc. issued a press release announcing its financial results for the six months ended August 31, 2024. A copy of the press release is furnished with this Current Report on Form 8-K as Exhibit 99.1 and is incorporated by reference herein. Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. (b) On September 20, 2024, Ronald M. Graham, Vice President - Administration announced his retirement from Ennis, Inc. (the "Company"), effective February 28, 2025. Mr. Graham has served as Vice President – Administration since 1998. Mr. Graham served as a director from 1998-1999 by appointment and was elected and served as director from June 2003 until June 2008. The retirement of Mr. Graham is not the result of any disagreement with respect to the Company's operations, policies or practices. Mr. Graham's 27 years of service and contributions to the Company are greatly appreciated. On September 20, 2024, Terry Pennington, Chief Revenue Officer announced his retirement from the Company, effective February 28, 2025. Mr. Pennington has served as Chief Revenue Officer since September 2022. Mr. Pennington joined the Company in January 2006 and served as the Company's business unit director overseeing 15 operating facilities and as the Vice President of Sales in 2009. The retirement of Mr. Pennington is not the result of any disagreement with respect to the Company's operations, policies or practices. Mr. Pennington's 19 years of service and contributions to the Company are greatly appreciated.

01. Other Information

Item 8.01. Other Information On September 20, 2024, the Board of Directors declared a quarterly cash dividend of 25.0 cents per share on the Company's common stock. The Board of Directors also approved a one-time special dividend of $2.50 per share. Regarding the Board's approval of the special dividend, Keith Walters, Chairman, Chief Executive Officer and President, commented by stating, "The Board's approval of a special dividend of $2.50 per share allows the shareholders to further share in the Company's accumulated profits. At the same time, given the Company's lack of debt, ample cash reserves, and strong free cash flow, the Company still has the necessary cash resources for its operations, capital investments and the continued funding of its ongoing acquisitions program." The ordinary dividend and special dividend are both payable on November 8, 2024 to shareholders of record on October 11, 2024.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits (d) Exhibits. Exhibit No. Description 99.1 Ennis, Inc. press release dated September 23, 2024 announcing its financial results for the six months ended August 31, 2024 (furnished pursuant to Item 2.02 of Form 8-K). 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Ennis, Inc. Date: September 23, 2024 By: /s/ Vera Burnett Vera Burnett Chief Financial Officer

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