DELUXE CORP. HAS ACQUIRED Custom Direct, a firm that provides direct-to-consumer checks. The sale price was $98 million, of which $86 million was used to extinguish Custom Direct’s outstanding debt. The acquisition was funded with a draw on Deluxe’s credit facility.
Custom Direct also produces other stationery products, custom designs and printed products, including print-on-demand products marketed to consumers and small businesses through its Janzoon.com Website.
Immediately prior to the acquisition by Deluxe, Custom Direct spun-off its EZShield product line to EZShield Parent, a subsidiary of EdgeStone Capital Equity Fund III of Toronto, Ontario.
According to Deluxe, during the remainder of 2010 the acquisition is expected to generate approximately $60 million in revenue and more than $15 million of additional operating cash.