Document Security Systems Inc. subsidiary Premier Packaging Corp. has signed a three-year, multimillion-dollar contract with one of the world’s largest retailers to supply photo mailing envelopes, folding cartons for prints and more.
“This is a major win for Premier and solidifies our relationship with a long-term customer,” said DSS COO Jason Grady, without revealing who that retail customer is. “The fact that we beat out our competitors for this highly prized contract valued in excess of $24 million is evidence of the strength and capabilities of our printing and packaging division. As we transform DSS into a multinational aggressive growth company, we will continue to pursue new opportunities to land major contracts with national retailers.”
In addition to mailing envelopes and cartons, the $6 million per year contract will provide the retailer with posters, canvas décor, photo books, passport photos and business printing. The contract may be renewed for a fourth year.
DSS added Premier to its portfolio in July 2019 and has since transformed the Victor company’s operations, investing in new manufacturing equipment, people and processes to increase its capacity, improve quality and delivery and ensure it has the horsepower it needs to support its customers and grow with their changing demands.
“Our customer’s commitment to Premier demonstrates that the investments we have made into our business strategy are starting to show,” Grady said. “These resources are the foundation and position this division for substantial growth.”
Production on the contract will begin in the third quarter of this year. Finished goods will ship to the customer’s more than 9,000 locations, and the retailer expects to open an additional 550 stores over the next year, potentially adding to the value of the contract.
Premier serves both regional and national customers in the medical device, consumer goods, nutraceutical, photo marketing and food and beverage industries.
Separately, last week DSS announced the underwriter of its previously announced public offering of 1.029 million common shares has exercised its full over-allotment option to purchase an additional 154,320 common shares of the company. The price to the public was $6.25 per share and the gross proceeds to the company from the over-allotment were $964,500 before fees.
DSS plans to use the proceeds from the offering to fund development and growth of new business lines and acquisition opportunities, general corporate and working capital needs. The total gross proceeds will be roughly $7.39 million. Aegis Capital Corp. acted as the book-runner for the offering.