ModusLink recently acquired privately-held IWCO Direct for $476 million in cash, according to a press release.
Chanhassen-based IWCO Direct is the largest direct mail production provider in North America, producing approximately four billion mailpieces annually.
“We essentially double the size of our company and add significant earnings and free cash flow,” said ModusLink Executive Chairman Warren Lichtenstein. “We add a market leader with industry-leading solutions, a client base consisting of Fortune 500 companies, and significant opportunities to drive both top- and bottom-line results. We intend to aggressively grow IWCO Direct, organically and through acquisitions....”
IWCO Direct will continue to be run by Jim Andersen, who has been CEO since 1999. ModusLink Corporation, the company’s digital and physical supply chain business, will continue to be run by Jim Henderson.
“We are excited to join forces with ModusLink,” stated Jim Andersen. “Their commitment and expertise, combined with our advanced data-driven marketing solutions, make this new combination advantageous for IWCO Direct’s customers and employees as well as our new shareholders.”
For the last 12 months through October 2017, IWCO Direct had net revenue of $470.6 million and ModusLink had net revenue of $417.8 million, according to a press release.