The sale was made to the original owners of Label Line, Ltd.
Commenting on the sale, Everett V. Pizzuti, CEO, stated, "The primary business of that facility, producing labels for distributors, was not fully compatible with the business of our QuickLabel Systems Product Group, which produces labels primarily for sale to end user customers who own QuickLabel color printers. Although the divestiture will result in approximately $3 million less in annual revenues in the new fiscal year, the effect on Astro-Med's profitability and cash flow will be positive with annual savings of approximately $400,000.
"As Astro-Med has expanded its label manufacturing capacity over the past three years in Montreal, Canada; Frankfurt, Germany; and West Warwick, R.I., the sale of the Asheboro plant will have little effect on the company's capabilities to supply labels to our growing base of color label printer customers."
Commenting on the sale, Everett V. Pizzuti, CEO, stated, "The primary business of that facility, producing labels for distributors, was not fully compatible with the business of our QuickLabel Systems Product Group, which produces labels primarily for sale to end user customers who own QuickLabel color printers. Although the divestiture will result in approximately $3 million less in annual revenues in the new fiscal year, the effect on Astro-Med's profitability and cash flow will be positive with annual savings of approximately $400,000.
"As Astro-Med has expanded its label manufacturing capacity over the past three years in Montreal, Canada; Frankfurt, Germany; and West Warwick, R.I., the sale of the Asheboro plant will have little effect on the company's capabilities to supply labels to our growing base of color label printer customers."
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