Leading mass customization company Cimpress N.V. CMPR launched a private offering of 7-year senior notes amounting to $275 million in aggregate principal amount. The offering is subject to market conditions.
The proceeds from the issue will be used to repay the outstanding debt under the company’s revolving credit facility and to meet the general corporate purposes of the company. The proceeds may also be employed for repayment of debt under its unsecured line of credit.
Cimpress had $346.9 million of debt on its balance sheet as of Dec 31, 2014. After incorporating debt covenant limitations, the company had $399.1 million in funds accessible for borrowing under its committed credit facility, as of year-end 2014.
Cimpress, formerly known as Vistaprint, boasts an impressive portfolio of customer-centric brands like Vistaprint, Drukwerkdeal, Albelli and Pixartprinting.
The firm recently inked an agreement to buy Exagroup SAS for €91.5 million ($102.4 million), an established web-to-print business in Europe, as it attempts to build an operational platform that optimizes production and supply chain of its products.
The deal is in line with Cimpress’ strategy to leverage a common platform across multiple products, with optimization of production and supply chain. In addition to broadening product offerings, the acquisition will unlock technological and operational synergies and offer cost and scale advantages.
Cimpress currently sports a Zacks Rank #2 (Buy). Other stocks in the business services sector which look promising include CBIZ, Inc. CBZ, ServiceMaster Global Holdings, Inc. SERV and Multi-Color Corp. LABL, each carrying a Zacks Rank #1 (Strong Buy).
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