Nashua Corp. acquires Label Systems International

Nashua Corporation, a manufacturer and marketer of labels, thermal and specialty papers, and imaging products, has acquired the assets of Label Systems International, a privately-held $16 million per-year manufacturer of pressure-sensitive labels, tags, specialized forms and imaging supplies used primarily in pharmacy, retail, grocery and industrial applications. The acquisition closed on June 3, 2005, and is expected to be accretive within six months.  Terms of the transaction were not announced.

LSI will become a part of Nashua’s Label business segment, and manufacturing, distribution and sales support operations will continue to be carried out at the current LSI facilities in St. Augustine, Florida. Don Copeland, LSI’s founder and President, will be a consultant to Nashua’s Label business, and key members of LSI’s management team will serve in sales, marketing and customer relations positions.

“The addition of LSI to Nashua’s Label division will enable us to more rapidly and cost-effectively expand our pharmacy and grocery product lines while providing important additions to our industrial and distribution business,” said Andrew Albert, president and chief executive officer of Nashua Corporation.  “ We are delighted to affiliate with the Copeland family and their team who have built an excellent franchise. We welcome LSI to Nashua and look forward to working together to increase shareholder value.”

Tom Pagel, president of the Nashua Label Division, said, “The addition of the LSI business to our own Label group will enable us to expand our product and service offerings in business sectors that are strategically important to our future growth. As importantly, we expect to benefit from the entrepreneurial spirit, excellent customer relationships and label industry knowledge that the Copelands and the LSI team are bringing to Nashua.” 

Don Copeland stated, “Nashua is well known in the industry for the quality of its products and its commitment to customer service. My team and I are pleased to be associated with Nashua, and are looking forward to pursuing our common goal of developing and delivering innovative, reliable and affordable label solutions to customers in an exemplary manner.”