Ennis announces sale of its apparel division

The purchase price includes $76,000,000 in cash to be paid at closing, subject to working capital adjustments, and an additional $12,000,000 to be paid pursuant to a capital lease covering certain company retained equipment utilized by the apparel division.

The Purchase Agreement includes a no-shop provision prohibiting the company from soliciting third-party proposals for the acquisition of Alstyle Apparel and the apparel division. But the company may respond to unsolicited proposals, and may terminate the agreement and accept an unsolicited proposal subject to its concurrent payment of a $3,000,000 termination fee to the Buyer.

The closing of the transaction, which is anticipated to occur by the end of April 2016, is conditioned upon the funding of a committed acquisition loan in favor of the Buyer, expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and the satisfaction of other customary closing conditions.

At this time, the company has not yet issued its audited financial results for its fiscal year ended February 29, 2016. The company anticipates the filing of its Annual Report on Form 10-K for such fiscal year on or about May 10, 2016. (MCJ)

Ennis