Clayton, Dubilier & Rice to acquire packaging distributor Veritiv Corporation

Veritiv Corporation (NYSE: VRTV), renowned for distributing packaging, facility solutions, and print products, announced its definitive agreement for acquisition by Clayton, Dubilier & Rice’s (CD&R) affiliate. Shareholders of Veritiv are set to gain handsomely from the deal, receiving a cash value of $170 for each share. This valuation signifies a substantial 31% premium over the company’s 30-day volume-weighted average price, which stood at $129.89.

Veritiv Board Backs the Transaction

After careful consideration, Veritiv’s Board of Directors recognized the deal’s optimal value for the company and its shareholders. With unanimous consent, the Board has endorsed the transaction and advises shareholders to vote affirmatively.

Sal Abbate, Veritiv’s Chief Executive Officer, stated, “This agreement marks a transformative milestone for Veritiv. The recognition from CD&R underscores our team’s resilience and innovative spirit. With this newfound alliance, our aim remains consistent – to offer cutting-edge, sustainable solutions to our loyal client base.”

Echoing the optimism, Rob Volpe, Partner at CD&R, mentioned, “We identify Veritiv as an established industry frontrunner. Their unique value proposition to clients stands out, and we’re enthusiastic about fortifying their ambitious growth plans while preserving their dedication to stakeholders.”

Transaction Details and Future Projections

For the acquisition to move forward, it needs to clear various stipulations, including shareholder endorsement and other standard closing criteria. One of the pivotal requirements is attaining mandatory regulatory approvals. The deal’s fruition is anticipated by the fourth quarter of 2023. Following this, Veritiv will transition into a privately-held entity, ceasing the listing of its shares on public trading platforms.

Greg Ciongoli, Partner at The Baupost Group, and a major shareholder at Veritiv, expressed support, “The Veritiv team has consistently showcased growth-focused strategies, mirroring in the significant premium on shares. Merging CD&R’s expertise, we remain hopeful about Veritiv’s luminous trajectory.”

Sealing their commitment, Baupost-managed funds have forged a Support Agreement, pledging their votes in favor of this landmark transaction.