One of metro Atlanta’s largest public companies will soon have a new private owner.
Packaging company Veritiv Corp. agreed Monday to a $2.3 billion deal with private equity firm Clayton, Dubilier & Rice (CD&R), according to documents filed with the Securities and Exchange Commission. The transaction is expected to close in the fourth quarter of this year, according to a news release.
The private buyout will result in New York-based CD&R paying $170 per share to Veritiv stockholders, a more than 20% premium to Friday’s closing price. At noon Monday, the company’s shares were trading near that price. Veritiv will release its second quarter financial results Tuesday.
“CD&R’s interest in our company is a testament to our team’s hard work, innovation and dedication,” Sal Abbate, CEO of Veritiv, said in the release.
Veritiv resulted from a 2014 merger of International Paper Company’s Xpedx division and Unisource Worldwide, quickly becoming one of the country’s largest providers of paper-based boxes, cartons and glass containers. The company’s corporate headquarters is located on the ground-floor level of Northpark Towncenter tower in Sandy Springs.
In 2016, the company was named to Fortune 500′s list of the largest public American companies by revenue. It remained on the list until this year, when it missed the cut by three spots — ranking at 503.
The Atlanta area is a logistics hub and also is home to numerous companies that make packaging materials. Packaging companies include WestRock and Graphic Packaging.
Last year, Veritiv reported $7.1 billion in net sales and nearly $338 million in net income, which was a 134% increase from 2021. As of the end of last year, Veritiv reported having about 5,000 employees worldwide.
