Subsequent Events

9 Months Ended

Nov. 30, 2014

Subsequent Events [Abstract]

Subsequent Events

16. Subsequent Events

On December 19, 2014, the Board of Directors of Ennis, Inc. declared a 17 ¹⁄₂ cents per share quarterly dividend to be payable on February 2, 2015 to shareholders of record on January 7, 2015. The Board also authorized an additional $10.0 million to be available to the Company’s Share Repurchase Program.

On January 5, 2015, the Company announced the completion of the acquisition of Kay Toledo Tag and Special Service (collectively “Kay Toledo”) for $16.0 million in a stock purchase transaction that closed December 31, 2014. An additional $1.0 million is available to earn over the next 3 years under an earn-out provision if certain financial metrics are met. Kay Toledo has locations in Toledo, Ohio and Neenah, Wisconsin through Special Service Partners. Experts in the digital printing and customer shore-run printing, Kay Toledo Tag produces tags, labels, tickets and commercial printing. Kay Toledo has $25.0 million in sales and sells through distributors and resellers. The Company will have 5 tag facilities in Texas, Iowa, Ohio and Wisconsin. The Company used its line of credit facility to fund the cash portion of the purchase price.