v3.26.1
Acquisitions
 12 Months Ended
Feb. 28, 2026
Business Combinations [Abstract]  
Acquisitions

(6) Acquisitions

The Company applies the acquisition method of accounting for business combinations. Under the acquisition method, the acquiring entity in a business combination recognizes 100% of the assets acquired and liabilities assumed at their acquisition date fair values. Management utilizes valuation techniques appropriate for the asset or liability being measured in determining these fair values. Any excess of the purchase price over amounts allocated to assets acquired, including identifiable intangible assets, and liabilities assumed is recorded as goodwill. Where amounts allocated to assets acquired and liabilities assumed is greater than the purchase price, a bargain purchase gain is recognized. Any acquisition-related costs are expensed as incurred. During fiscal year 2026 and 2025, the acquisition related cost were not significant to the Company's Consolidated Financial Statements.

 

Acquisition of CFC Print & Mail

On November 14, 2025, the Company acquired the assets and business of CFC Print & Mail ("CFC"), which is based in Grand Prairie, TX for approximately $3.9 million in cash. The Company performed an allocation of the total estimated consideration and recorded the underlying assets acquired (including certain identified intangible assets) and liabilities assumed based on the estimated fair values using the information available as of the acquisition date. The Company recorded intangible assets with definite lives ranging from 2 to 13 years of approximately $2.3 million in connection with the transaction, which are deductible for tax purposes. The acquisition of CFC further strengthens our leading position in the business products and commercial print sector.

 

The following table summarizes the Company's purchase price allocation for CFC as of the acquisition date (in thousands):

 

Accounts receivable

$

652

 

Inventories

 

336

 

Other assets

 

56

 

Right-of-use asset

 

239

 

Property, plant and equipment

 

1,000

 

Intangibles

 

2,307

 

Operating lease liability

 

(239

)

Accounts payable and accrued liabilities

 

(418

)

Acquisition price

$

3,933

 

 

 

Acquisition of Northeastern Envelope Company and Envelope Superstore

On April 11, 2025 the Company acquired the net assets and business of Northeastern Envelope Company ("NEC"), which is based in Old Forge, Pennsylvania, and Envelope Superstore ("ESS") which is based in Hiram, Georgia, for approximately $35.0 million in cash. The Company performed an allocation of the total estimated consideration and recorded the underlying assets acquired (including certain identified intangible assets) and liabilities assumed based on the estimated fair values prepared by management using the information available as of the acquisition date. All goodwill of $12.2 million recognized as a part of this acquisition is deductible for tax purposes. The Company also recorded intangible assets with definite lives ranging from 2 to 13 years of approximately $11.3 million in connection with the transaction, which are also deductible for tax purposes. The acquisition of NEC and ESS strengthens our production capabilities to serve our customers in the Northeast and Southeast United States.

 

The following table summarizes the Company's purchase price allocation for NEC and ESS as of the acquisition date (in thousands), which includes a working capital adjustment of approximately $0.4 million:

 

Accounts receivable

$

1,585

 

Inventories

 

2,914

 

Right-of-use asset

 

601

 

Property, plant and equipment

 

7,371

 

Goodwill

 

12,237

 

Intangibles

 

11,348

 

Operating lease liability

 

(601

)

Accounts payable and accrued liabilities

 

(458

)

Acquisition price

$

34,997

 

 

Acquisition of Printing Technologies

On June 26, 2024, the Company acquired the assets and business of Printing Technologies, Inc. ("PTI"), which is based in Indianapolis, Indiana, for approximately $5.5 million in cash. The Company performed an allocation of the total estimated consideration and recorded the underlying assets acquired (including certain identified intangible assets) and liabilities assumed based on the estimated fair values using the information available as of the acquisition date. The Company recorded intangible assets with definite lives ranging from 2 to 10 years of approximately $2.0 million in connection with the transaction, which are deductible for tax purposes. The acquisition of PTI strengthens our production capabilities and diversifies our product offerings to enable us to better serve our broad customer base.

 

The following table summarizes the Company's purchase price allocation for PTI as of the acquisition date (in thousands):

 

Accounts receivable

$

1,339

 

Inventories

 

1,826

 

Other assets

 

100

 

Right-of-use asset

 

847

 

Property, plant and equipment

 

887

 

Intangibles

 

2,012

 

Operating lease liability

 

(847

)

Accounts payable and accrued liabilities

 

(633

)

Acquisition price

$

5,531

 

 

 

During fiscal year 2025, the Company also purchased a customer list in the amount of $0.6 million.

The results of operations for PTI, NEC, ESS, and CFC are included in the Company’s Consolidated Financial Statements from the respective dates of acquisition. The following table sets forth certain operating information on a pro forma basis as though each acquisition had occurred as of the beginning of the comparable prior period (that is, March 1, 2024). The following pro forma information includes the estimated impact of adjustments such as amortization of intangible assets, depreciation expense and interest expense and related tax effects (in thousands, except per share amounts).

 

 

 

Unaudited

 

 

Unaudited

 

 

Unaudited

 

 

 

2026

 

 

2025

 

 

2024

 

Pro forma net sales

 

$

399,224

 

 

$

422,158

 

 

$

430,470

 

Pro forma net earnings

 

 

42,977

 

 

 

43,332

 

 

 

43,994

 

Pro forma earnings per share - diluted

 

$

1.67

 

 

$

1.66

 

 

$

1.70

 

 

 

The pro forma results are not necessarily indicative of what would have occurred if the acquisition had been in effect for the period presented.