The Gores Group, LLC recently announced that it has acquired substantially all of the assets and assumed certain liabilities from National Envelope Corporation ("NEC"), through a transaction under Section 363 of the U.S. Bankruptcy Code. The U.S. Bankruptcy Court for the District of Delaware approved the transaction on August 23, 2010.
National Envelope Corporation was founded in 1952 and is the largest envelope producer in the United States, manufacturing 37 billion envelopes annually. Based in Frisco, Texas, NEC is an official envelope converter for every major North American paper mill in the $3.7 billion North American envelope industry, generating revenues of approximately $600 million.
"NEC is the market leader in the merchant/wholesale channel, with meaningful growth opportunities in the attractive consumer market. Leveraging a national manufacturing presence and unparalleled supplier and customer relationships, NEC will serve as an attractive platform for future growth, both in the envelope industry and across other relevant adjacencies," said Jordan W. Katz, Managing Director of The Gores Group.
"We are very happy to be partnering with The Gores Group. The Gores Group has a solid reputation for working closely with the companies it acquires to achieve full operational potential. We look forward to working with them to accelerate our performance over time," stated Shelby Marlow, NEC’s Chief Financial Officer. "We are emerging a well-capitalized company that remains committed to serving our customers with the highest level of quality, service and professionalism."
Mr. Marlow added, "We continue to thank each of our employees, customers and suppliers for their support, loyalty and cooperation during the restructuring process. We are very optimistic about the long-term potential for NEC and the envelope industry."
