Under the terms of the deal announced in August 2023, CD&R has purchased each share of Veritiv for $170 per share in cash and following the closing, the packaging company has become a privately held entity with its common stock no longer listed on any public markets
Clayton, Dubilier & Rice, LLC (CD&R), through one of its affiliates, has wrapped up the previously announced $2.6bn acquisition of US-based packaging company Veritiv.
Headquartered in Atlanta, Veritiv is engaged in providing packaging, facility solutions, print and publishing products, and JanSan and hygiene products, services and solutions.
The company has distribution centres across the US and Mexico.
Under the terms of the deal announced in August 2023, CD&R has purchased each share of Veritiv common stock issued and outstanding immediately before the closing for $170 per share in cash. The packaging company, which was previously listed on the New York Stock Exchange (NYSE), has now become a privately held entity.
Veritiv CEO Sal Abbate said: “The completion of this transaction represents an important milestone in our company’s journey.
“CD&R’s significant investment in Veritiv is a testament to our company’s strong positioning as a leading specialty distribution solutions company and to our team’s hard work and commitment.
“We are confident that this partnership, along with the financial and operational flexibility we will now have as a private company, will enable us to continue enhancing the innovative and sustainable solutions we deliver to our customers today – and into the future.”
With the deal closed, John Stegeman, operating advisor to CD&R funds, will act as the chairman of the packaging company.
CD&R partner Rob Volpe said: “After following Veritiv for several years, we are excited to be closing on our acquisition today.
“We have great appreciation for the high quality of the Veritiv business, which has strong customer and supplier relationships, a highly engaged workforce, and differentiated operational and service capabilities.
“Veritiv’s management team has executed a significant transformation over the last few years, creating a strong leader in the industry. We are excited to support Sal and the leadership team in accelerating organic and inorganic growth and pursuing additional value creation opportunities.”
Veritiv’s exclusive financial advisor was Morgan Stanley & Co. and its legal counsel was Alston & Bird.