Veritiv Becomes Privately Held
Company
ATLANTA, Nov. 30,
2023 /PRNewswire/ -- Veritiv Corporation, a leading
distributor of packaging, facility solutions, and print products,
today announced that an affiliate of Clayton, Dubilier & Rice, LLC (CD&R)
completed its acquisition of the company.
On August 7, 2023, CD&R and
Veritiv announced they had entered into a definitive agreement
under which each share of Veritiv common stock issued and
outstanding immediately prior to the closing of the transaction
would be acquired for $170.00 per
share in cash, valuing Veritiv at approximately $2.6 billion.
"The completion of this transaction represents an important
milestone in our company's journey," said Sal Abbate, Chief Executive Officer of Veritiv.
"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."
"After following Veritiv for several years, we are excited to be
closing on our acquisition today," said Rob
Volpe, Partner at CD&R. "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."
John Stegeman, Operating Advisor
to CD&R funds, will serve as Chairman of Veritiv with the
closing of the transaction. Mr. Stegeman is the Chief Executive
Officer of White Cap. Previously, he was the President and Chief
Executive Officer of Ferguson Enterprises. "We are pleased to
support Veritiv's mission of delivering innovative and sustainable
solutions to customers, and we are excited to contribute to
Veritiv's growth as a private company," said Mr. Stegeman.
With the completion of the transaction, Veritiv's common stock
has ceased trading and is no longer listed on the New York Stock
Exchange.
Advisors
Morgan Stanley & Co. LLC served as exclusive financial
advisor and Alston & Bird LLP served as legal counsel to
Veritiv.
CD&R obtained committed financing from Goldman Sachs,
RBC Capital Markets, LLC, Wells Fargo Securities, BMO Capital
Markets Corp., UBS Investment Bank, BNP PARIBAS, Citizens Capital
Markets, ING, Mizuho, Natixis, Rabo Securities, Regions Securities
LLC, Scotiabank, Stifel, and TD Securities. Guggenheim Securities,
LLC and Wells Fargo Securities served as lead financial advisors to
CD&R, and BMO Capital Markets Corp., Goldman Sachs, RBC Capital
Markets, LLC, and UBS Investment Bank also served as financial
advisors. Kirkland & Ellis LLP and Debevoise & Plimpton LLP
served as legal counsel to CD&R.
About Veritiv
Veritiv Corporation, headquartered in Atlanta, is a leading full-service provider of
packaging, JanSan and hygiene products, services and solutions.
Additionally, Veritiv provides print and publishing products.
Serving customers in a wide range of industries both in
North America and globally,
Veritiv has distribution centers throughout the U.S. and
Mexico, and team members around
the world helping shape the success of its customers. For more
information about Veritiv and its business segments
visit www.veritiv.com.
About Clayton, Dubilier
& Rice
Clayton, Dubilier & Rice is
a private investment firm with a strategy predicated on building
stronger, more profitable businesses across a broad range of
industries, including Industrials, Healthcare, Business Services,
Consumer, Technology and Financial Services. Since its inception in
1978, CD&R has managed the investment of more than $46 billion in over 120 companies with an
aggregate transaction value of more than $190 billion. For more information on CD&R,
please visit www.cdr-inc.com and follow the Firm's
activities through LinkedIn and @CDRBuilds on
Twitter.
Cautionary Note Concerning Forward-Looking Statements
This release contains certain forward-looking statements that
reflect Veritiv's current views with respect to certain current and
future events. These forward-looking statements are, and will be,
subject to many risks, uncertainties and factors relating to
Veritiv's operations and business environment which may cause
future events to be materially different from these forward-looking
statements or anything implied therein. Any forward-looking
statements in this release are based upon information available to
Veritiv on the date of this release. Veritiv does not undertake to
publicly update or revise its forward-looking statements even if
experience or future changes make it clear that any statements
expressed or implied therein will not be realized. Additional
information on risk factors that could affect Veritiv may be found
in Veritiv's filings with the Securities and Exchange
Commission.
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SOURCE Veritiv Corporation