Cenveo agreed to acquire Cadmus Communications for $24.75 per share in cash to become the third-largest graphic services provider in North America, the companies said.
The cash deal, at a premium of 18 percent to Cadmus' Tuesday closing price, values the company at about $237 million based on the number of shares outstanding stated in its latest annual filing.
Including assumption of debt, the deal value is about $430 million, the companies said.
The deal is expected to add to Cenveo's earnings. Cenveo expects annualized cost savings of at least $20 million in the first 12 months after the closing of the transaction.
Cenveo said the chief executive of Cadmus, Bruce Thomas, as well as entities associated with its largest shareholder, Nathu Puri, have agreed to vote in favor of the deal.
Cenveo said the acquisition will allow it to expand upon Cadmus' position in the scientific, technical, and medical journal market as well as its short-run publication expertise.
The deal is expected to close in the first quarter of 2007. The combined company expects revenue over $2 billion.