USA – Private equity company Clayton, Dubilier & Rice’s (CD&R) affiliate has signed a definitive agreement to acquire packaging products distributor Veritiv.
Under the terms of the agreement, each share of Veritiv common stock issued and outstanding immediately prior to the closing of the transaction will be entitled to receive US$170 per share in cash, representing a nearly 31% premium over Veritiv’s 30-day volume-weighted average price of US$129.89.
According to a Reuters report, this deal is valued at US$2.3 billion and will transform Veritiv into a private entity.
Having determined that the offer is in the best interests of the company and its shareholders, Veritiv’s Board of Directors has unanimously voted to approve the transaction and recommends that shareholders vote in favor of the transaction.
Sal Abbate, Chief Executive Officer of Veritiv said: “This agreement is a pivotal moment in Veritiv’s history. CD&R’s interest in our company is a testament to our team’s hard work, innovation, and dedication.
“Fueled by this partnership, we will continue to evolve towards our greatest potential, delivering innovative and sustainable solutions to our customers today – and into the future.”
Rob Volpe, Partner at CD&R added: “Veritiv is a very well-positioned industry leader with differentiated capabilities that deliver value to customers.
“We look forward to supporting Veritiv’s talented leadership team in this next phase of the company’s growth, as they continue to pursue their long-term strategic objectives while maintaining an unwavering commitment to employees, suppliers, and customers.”
The transaction remains subject to shareholder approval and other customary closing conditions, including the receipt of required regulatory approvals, and is expected to close in the fourth quarter of 2023.
Upon the completion of the transaction, Veritiv will become a privately held company and shares of Veritiv common stock will no longer be listed on any public markets.
As per the agreement’s terms, CD&R has agreed to pay US$170 in cash for each share of Veritiv common stock issued and outstanding immediately, before the completion of the transaction.
Headquartered in Atlanta, US, Veritiv offers packaging, as well as hygiene products, services, and solutions.
The company serves customers in different industries both in North America and across the globe. It manages distribution centers across the US and Mexico.
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