Veritiv completes sale of rigid packaging business to TricorBraun, strengthening focus on specialty packaging solutions

Atlanta-based Veritiv Operating Company has officially closed the sale of its rigid packaging business, Veritiv Containers, to TricorBraun, allowing the company to sharpen its focus on specialty packaging solutions and core business operations.

Veritiv Operating Company, a major player in the packaging distribution sector, has finalized the sale of its rigid packaging business to TricorBraun, one of the largest global suppliers of rigid and flexible packaging solutions. The transaction, which involves Veritiv Containers—previously known as All American Containers—marks a strategic shift for Veritiv as it strengthens its position in specialty packaging solutions while streamlining its service offerings.

The move is part of a broader corporate strategy aimed at reinforcing Veritiv’s capabilities in high-value packaging solutions that cater to a diverse range of industries. By divesting its rigid packaging business, Veritiv aims to optimize its resources, enhance operational efficiency, and drive long-term growth in its core markets.

Why Veritiv Sold Its Rigid Packaging Division

With increasing competition in the packaging industry, Veritiv has been restructuring its business to focus on higher-margin segments. The decision to sell its rigid packaging business aligns with this strategy, enabling the company to allocate more resources toward specialty packaging solutions that provide greater value to customers.

Sal Abbate, Chief Executive Officer of Veritiv, emphasized the importance of this transition in a statement following the announcement.

“With the completion of the Veritiv Containers sale, we can now concentrate on expanding our leadership in specialty packaging solutions and enhancing the value we bring to our customers,” said Abbate. “We appreciate the dedication of our Veritiv Containers team members and are confident that they will thrive at TricorBraun, which has a strong commitment to the rigid packaging business and long-term industry success.”

Abbate also reaffirmed Veritiv’s commitment to ensuring a smooth transition for employees, customers, and suppliers, working closely with TricorBraun to integrate operations efficiently.

What the Acquisition Means for TricorBraun

For TricorBraun, the acquisition of Veritiv Containers represents a strategic expansion of its footprint in the rigid packaging business. As one of the leading global suppliers of rigid packaging, TricorBraun continues to grow its capabilities through acquisitions, positioning itself as a dominant force in the packaging industry.

Industry analysts suggest that this acquisition will strengthen TricorBraun’s position in key markets by enhancing its ability to deliver packaging solutions tailored to various industries, including food and beverage, healthcare, personal care, and industrial applications. The integration of Veritiv Containers is expected to provide TricorBraun with a competitive edge, allowing it to leverage new technologies and expand its product offerings.

According to industry experts, the packaging industry has seen a growing demand for innovative, sustainable, and cost-effective solutions. TricorBraun’s continued investment in acquisitions aligns with this trend, ensuring it remains ahead of market demands.

Market Impact and Industry Insights

The packaging industry has been evolving rapidly, driven by shifts in consumer preferences, sustainability initiatives, and technological advancements. The sale of Veritiv Containers highlights a broader trend where companies are refining their business models to align with these industry changes.

Analysts note that the divestiture allows Veritiv to focus on its core competencies, particularly in developing specialty packaging solutions that address emerging industry challenges. Meanwhile, TricorBraun’s acquisition reflects its ongoing strategy of consolidation, aimed at expanding its portfolio and strengthening its supply chain capabilities.

The transaction also underscores the importance of adaptability in the packaging industry. As companies seek to meet the demands of sustainability, regulatory compliance, and evolving customer expectations, strategic acquisitions and divestitures will continue to shape the competitive landscape.

Financial and Legal Aspects of the Deal

The transaction was supported by major financial and legal advisors, with Goldman Sachs & Co. LLC serving as Veritiv’s financial advisor and Alston & Bird providing legal counsel. While the financial details of the sale were not publicly disclosed, industry analysts speculate that the deal aligns with recent trends in packaging industry acquisitions, where companies focus on streamlining operations to enhance profitability.

Veritiv’s decision to divest non-core assets follows a pattern seen across multiple industries, where companies seek to optimize their portfolios to drive sustained growth. By focusing on specialty packaging solutions, Veritiv aims to enhance its value proposition while capitalizing on emerging market opportunities.

About Veritiv and TricorBraun

Veritiv Operating Company is a leading provider of specialty packaging solutions, along with JanSan, hygiene, print, and publishing services. Headquartered in Atlanta, the company operates a vast distribution network across North America, serving a wide range of industries. Veritiv’s strategic focus on packaging solutions positions it as a key player in the evolving packaging industry.

TricorBraun is one of the largest global suppliers of rigid and flexible packaging, offering solutions across multiple industries. The company specializes in design, sourcing, and distribution, working closely with manufacturers to develop innovative packaging solutions that meet customer needs. With an extensive network and a strong industry presence, TricorBraun continues to expand through strategic acquisitions.

A Strategic Shift for Veritiv and TricorBraun

The sale of Veritiv Containers to TricorBraun represents a significant shift in the packaging industry, highlighting the strategic realignment of both companies. While Veritiv strengthens its focus on specialty packaging solutions, TricorBraun expands its reach in the rigid packaging business, solidifying its position as a market leader.

As the packaging industry continues to evolve, companies will need to remain agile, leveraging strategic acquisitions and divestitures to stay ahead of market trends. This transaction is a prime example of how leading firms are reshaping their portfolios to drive long-term success in an increasingly competitive landscape.