Texas-based Ennis, Inc. (asi/52493), a Top 40 supplier as recently as 2017, announced Friday that one of its wholly-owned subsidiaries has entered into an agreement to acquire assets of South Elgin, IL-based Integrated Print & Graphics.

Ennis executives said the acquisition will strengthen and complement its business. “IPG provides some additional capabilities to our product line, and its focus on high-color commercial print to the direct mail channel is consistent with our desire to expand this product line throughout the Ennis business model,” said Keith Walters, chairman, CEO and president of Ennis. “We think this will enhance our current product mix and allow us to pursue more expansive product lines in the integrated product market.”

Keith Walter, Ennis

According to Ennis, IPG has operated in the Chicago area marketplace since the 1970s. The company produces about $20 million in business annually. While Ennis did not identify the subsidiary making the purchase, the supplier said that the firm will operate under the IPG brand and name, leasing the current facility from leaving IPG owner Gary Mozina, who owns the space. Mozina will not be continuing with IPG, but employees will remain, producing the same products with “the same quality and attention to customer service,” Ennis said.

“Ennis believes that the acquisition will be accretive to earnings in the current year,” the company said. The deal was expected to close on March 16. Ennis did not release financial terms.

Ennis’ most recent company financial report was on its fiscal third quarter, which ended Nov. 30 last year. Ennis reported that revenue for the quarter increased 15.5% year-over-year to $108.1 million. Net earnings were $10.4 million, or $0.40 per diluted share, compared to $8.3 million, or $0.33 per diluted share, for the same quarter during the fiscal year before.

Meanwhile, revenues for the nine-month period ended Nov. 30 were $300.1 million. That compares to $283.1 million for the same period the prior fiscal year. Net earnings from operations for the nine months were $29.2 million, or $1.14 per diluted share, compared to $24.6 million, or $0.97 per diluted share for the same period last year.

Ennis’ EBITDA for the third quarter was about $19 million, up from $16.8 million. For the nine-month period, EBITDA also increased, rising from $50.2 million to $51.9 million.