Back to top

Image: Bigstock

Cimpress Inks Deal to Buy National Pen to Expand Portfolio

Read MoreHide Full Article

Leading mass customization company Cimpress N.V. (CMPR - Free Report) inked a definitive agreement to acquire National Pen Co. LLC, for approximately $218 million, subjected to customary adjustments. The deal is expected to be closed by the end of Dec 2016.

Headquartered in San Diego, CA, National Pen is a leading provider of personalized marketing solutions to small and medium sized businesses worldwide. The company has its operations across the U.S., Mexico, Ireland, and France.

Cimpress will be well positioned to innovate products for its customers using National Pen’s technology, enabling it to set itself apart from its peers. National Pen will complement the organic investment made by Cimpress in its technology and supply chain capabilities for differentiated product offerings. National Pen’s proficiency in direct marketing, telesales and data analytics have majorly contributed to its consistent revenue growth.

Post acquisition, National Pen will continue its operations as an integral part of Cimpress. In addition, Cimpress will support and further develop National Pen’s emerging e-commerce presence by incorporating the latter’s product range into its existing Vistaprint and Upload and Print e-commerce brands.

Cimpress expects the transaction to create incremental value, consistent with its previously articulated M&A investment hurdle rate of 15% IRR.

However, Cimpress underperformed the Zacks categorized Printing Commercial industry with an average return of 6.8% in the last 30 days compared with 8.8% for the latter. M&A investments are likely to weigh on this Zacks Rank #4 (Sell) stock’s top line. The earnings estimates of the company for the current quarter have decreased 7.4% in the last 30 days to $1.13 per share with significant downward estimate revisions.

Some better-ranked stocks in the industry include LogMeIn, Inc. , ARC Document Solutions, Inc. (ARC - Free Report) and Carbonite, Inc. .  LogMeIn and Carbonite sport a Zacks Rank #1 (Strong Buy), whereas ARC Document carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

LogMeIn has a long-term earnings growth expectation of 22.5% and is currently trading at a forward P/E of 97.9x.

ARC Document is currently trading at a forward P/E of 19.0x. The company has a positive average earnings surprise of 33.33% for the last four quarters, beating estimates significantly on only one occasion.

Carbonite has a long-term earnings growth expectation of 30.0% and is currently trading at a forward P/E of 76.7x.

Zacks’ Best Private Investment Ideas

In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time? Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


ARC Document Solutions, Inc. (ARC) - free report >>

Cimpress plc (CMPR) - free report >>

Published in