Veritiv Corporation, a prominent distributor of packaging, facility solutions, and print products, has announced its agreement to be acquired by an affiliate of Clayton, Dubilier & Rice, LLC (CD&R). The acquisition will see each share of Veritiv common stock entitled to receive $170 in cash, representing an impressive nearly 31% premium over Veritiv's 30-day volume-weighted average price of $129.89.

The Board of Directors at Veritiv has unanimously approved the transaction, having concluded that it is in the best interests of the company and its shareholders. They recommend that shareholders vote in favor of the acquisition.

Sal Abbate, Chief Executive Officer of Veritiv, hailed the agreement as a pivotal moment in the company's history, attributing it to the team's hard work, innovation, and dedication. He expressed excitement about the partnership with CD&R and its potential to further fuel Veritiv's growth, enabling them to deliver innovative and sustainable solutions to their customers now and in the future.

Rob Volpe, Partner at CD&R, recognized Veritiv as a well-positioned industry leader with unique capabilities that bring value to customers. CD&R is eager to support Veritiv's talented leadership team as the company continues to pursue its long-term strategic objectives while upholding its commitment to employees, suppliers, and customers.

The transaction is subject to shareholder approval and other customary closing conditions, including regulatory approvals, with the expected closing in the fourth quarter of 2023. After the completion of the acquisition, Veritiv will become a privately held company, and its common stock will no longer be listed on public markets.

The Baupost Group, Veritiv's largest shareholder, has expressed support for the transaction. They believe in the company's management team and its successful execution of a multi-year growth strategy, resulting in substantial value creation that justifies the premium paid for the shares. With CD&R's expertise, The Baupost Group is confident in Veritiv's bright future.

To further solidify their support, funds managed by Baupost have entered into a Support Agreement, committing to vote their shares in favor of the acquisition.


Source:ir.veritiv.com

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