The Colorado-based company said it signed a definitive agreement to buy Rex on December 27 for an undisclosed all-cash sum and the transaction is expected to be completed by the end of the first quarter of 2008.
Rex currently has a turnover of over $40m and, as well as personal care packaging, it is also involved in the health care, pharmaceutical, clothing and food packaging segments.
It has carved a name for itself in the paper packaging segment, mainly supplying the personal care market with secondary packaging in the form of cartons, where it is known for its printing technology.
Carton packaging continues to enjoy steady growth from the personal care industry, as an increasing number of mass market brands shift towards secondary packaging in an effort to give brands a more up-market image.
"The addition of Rex will strengthen our position in the specialty packaging marketplace," said Robert Burton, CEO of Cenveo.
He added that the deal would present significant synergies that would help to extend the company's 'global packaging network'.
Rex has a workforce of 170 based at its production site in Jacksonville, Florida, and allthough Cenveo has said that Rex will be integrated into its operations, it has not been confirmed what will happen to the workforce or the production facilities.
Following the announcement, Cenveo confirmed that Gerald Armstrong has been appointed to the company's board of directors, while Robert Kittel has now stepped down as a company director, to be replaced by Jerry Armstrong.
