CD&R to Take Packaging Firm Veritiv Private in $2.3 Billion Deal
Private equity firm Clayton, Dubilier & Rice (CD&R) has agreed to acquire packaging firm Veritiv Corporation in a $2.3 billion deal.
The deal would take Veritiv private and allow CD&R to implement its own turnaround plan for the company.
Veritiv is a leading provider of packaging and printing products and services to businesses in North America.
The company has been struggling in recent years, as the pandemic has disrupted its supply chain and forced it to cut costs.
CD&R believes that it can turn Veritiv around by investing in its operations and expanding its product offerings.Under the terms of the deal, CD&R would pay $170 per share in cash for Veritiv, representing a nearly 20% premium to its last close.
The deal is expected to close in the fourth quarter of 2023.In a statement, CD&R partner Scott DiSilvestro said that Veritiv was “a great fit for our investment strategy.
He added that CD&R was “excited to partner with the Veritiv team to build a leading packaging and printing solutions company.”Veritiv CEO William DiMaio said that the deal was “in the best interests of our shareholders.”
He added that CD&R was “the right partner to help us achieve our full potential.”The acquisition of Veritiv is the latest in a series of deals by CD&R in the packaging industry. In 2022, CD&R acquired MeadWestvaco Corporation for $4.5 billion.
The company also owns Graphic Packaging International, one of the largest packaging companies in the world.CD&R’s investment in Veritiv is a sign of the firm’s confidence in the packaging industry.
The industry is expected to grow in the coming years, as businesses continue to demand innovative packaging solutions. CD&R believes that Veritiv is well-positioned to capitalize on this growth.
The acquisition of Veritiv is also a sign of the growing trend of private equity firms taking public companies private.
Private equity firms have been on a buying spree in recent years, as they have sought to acquire companies that they believe they can turn around.
The Veritiv deal is the latest example of this trend.It remains to be seen whether CD&R will be able to turn Veritiv around. However, the company has a strong track record of success in the packaging industry.
