STAMFORD, Conn. (AP) -- Shares of Cenveo Inc. rose Thursday after the printing and packaging company said it plans to buy envelope maker National Envelope out of bankruptcy for $25 million in cash and stock.
The Stamford, Conn.-based company said after the market closed Wednesday that the deal would allow it to cut costs and increase the types of products it offers its customers. It expects the acquisition to add $300 million in annual sales and $30 million in earnings before interest, taxes and other items.
Cenveo reported revenue of $1.8 billion in 2012.
National Envelope, which is based in Frisco, Texas, filed for Chapter 11 bankruptcy protection in June. The acquisition is subject to approval from bankruptcy court.
Shares of Cenveo rose 9.9 percent, or 27 cents, to close at $3.