Business News

National Envelope Reaches Agreement to Sell its Assets

Monday 26. July 2010 - National Envelope Corporation ("NEC") has announced that it has entered into an asset purchase agreement with NEV Holdings, LLC, an affiliate of The Gores Group, LLC. Under the agreement, NEV Holdings, LLC would acquire substantially all of the Company’s assets, subject to the terms of the asset purchase agreement, for total cash consideration of approximately $134,500,000 and the assumption of certain liabilities including $20,000,000 of trade obligations.

To implement the transaction, NEC will sell the assets of the Company under Section 363 of the United States Bankruptcy Code. Other parties will have an opportunity to submit higher and better offers to purchase the Company’s assets under this Court-supervised process and NEC anticipates the sale transaction will be completed in September.

Regarding the agreement, James J. Loughlin, Jr., Co-Chief Restructuring Officer of the Company stated “We are pleased to have reached an agreement, which is a critical step in the sales process and puts National Envelope on a fast path to complete the restructuring process. We remain committed to serving our customers with the same level of quality, service and professionalism the Company has always provided.”

Upon approval of the bid procedures by the Bankruptcy Court, the Company will announce the initiation of the formal bidding process, and at such time interested parties will be asked to contact Geoffrey Richards at William Blair & Company for more information regarding the bidding process.

William Ungar, founder and Chairman of NEC, added, “We thank each of our employees, customers and suppliers for their continuing support and commitment to the Company’s success. We continue to be optimistic about the long-term viability of the envelope industry and are excited about the future of the Company as we work to complete this process.”