Worcester's LVI Acquired By Lowell Firm
Worcester-based LaVigne Inc., which does business as LVI Print Optimization, has agreed to be acquired by DS Graphics of Lowell for $1.55 million.
The privately-held DS Graphics is a printing, mailing, fulfillment and creative services firm that has clients in publishing, software, advertising and other industries.
According to documents filed in federal Bankruptcy Court by Axia Advisors LLC, the firm ushering the bankrupt LVI toward acquisition, 59 firms were approached to buy LVI, but a scarce few had the resources or willingness to make the purchase.
LaVigne filed for Chapter 11 bankruptcy in early July saying a "liquidity crisis" was forcing the company to seek potential buyers.
In court documents, Axia described how HubCast Inc. acted as a "stalking horse" bidder for LVI, offering $1.38 million for the company. HubCast is a Wakefield-based digital printing company that lists Toby LaVigne as its president. LaVigne is also an owner of LVI.
DS Graphics has not offered to assume the lease of LVI's 10 Coppage Dr. facility. Instead, it will occupy the facility during a "transition period," during which it will pay the rent.
LaVigne was founded in Worcester in 1898. The deal for the sale of LVI is expected to close this week. The company said business should continue as usual for its clients and future plans for the combined company are in development.
In a statement, LVI CEO Christopher Wells said he expects to become part of the DSG executive team.
Wells could not be reached for comment this morning.
The largest unsecured creditor listed in LaVigne's bankruptcy filing was INS LLC, which owns 10 Coppage Dr., where LaVigne Inc. is headquartered. INS was owed $235,571 in lease payments. Toby LaVigne is listed as the manager for INS LLC.
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