CPE News (3.18.2022) – Veritiv Corporation (NYSE: VRTV) has agreed to sell Veritiv Canada, Inc. business to Imperial Dade, a portfolio company of Bain Capital Private Equity and Audax Private Equity, for CDN $240 million or US $190 million.
Subject to Canadian regulatory approval, the transaction is expected to close prior to the end of the second quarter. Upon closing of the sale, Veritiv’s approximately 900 employees in Canada will become employees of Imperial Dade.
Mississauga, Ontario based Veritiv Canada is a full-service provider of janitorial and hygiene products print and food service packaging solutions.
Veritiv Corporation is a North American business-to-business full-service provider of value-added packaging products and services, as well as facility solutions, print and publishing products and services. Veritiv operates from 115 distribution centers primarily throughout the United States, Canada and Mexico.
Jersey City, New Jersey based Imperial Dade is a leading independently owned and operated distributor of foodservice packaging, facilities maintenance supplies and equipment in the United States, Puerto Rico and the Caribbean.
The Veritiv Canada acquisition will mark its entry into the Canadian market by Imperal Dade.
In May 2019, Bain Capital Private Equity acquired majority stake in Imperial Dade from Audax Private Equity which together with management led by Robert and Jason Tillis, CEO and President, remain minority shareholders.
photo credit: Imperial Dade
Veritiv Announces Entry into Definitive Purchase Agreement to Sell its Canadian Operations
ATLANTA, March 18, 2022 /CNW/ — Veritiv Corporation (NYSE: VRTV), a full-service provider of business-to-business products, services and solutions, announced today that it has signed a definitive purchase agreement to sell its Veritiv Canada, Inc. business to Imperial Dade.
“This sale aligns with our strategy to focus on higher growth, higher margin businesses and geographies, and further invest in building on our industry-leading Packaging and Facility Solutions capabilities,” said Sal Abbate, Veritiv’s Chief Executive Officer. “We thank our Canada employees for their hard work and dedication to Veritiv. We believe this is a great opportunity for them to be aligned with a company that is focused on the Canadian market. We look forward to working closely with Imperial Dade to execute a smooth and successful transition for employees, customers and suppliers of our Canada business.”
Veritiv expects to use net proceeds from the transaction to support its recently announced $200 million share repurchase program as well as future capital priorities and growth initiatives.
The deal is subject to Canadian regulatory approval and is expected to close prior to the end of the second quarter. Upon closing of the sale, Veritiv’s approximately 900 employees in Canada will become employees of Imperial Dade.
Greenhill & Co. served as financial advisor and Sidley Austin LLP served as legal advisor on the transaction.
Veritiv Corporation (NYSE: VRTV), headquartered in Atlanta and a Fortune 500® company, is a full-service provider of packaging, JanSan and hygiene products, services and solutions. Additionally, Veritiv provides print and publishing products, and logistics and supply chain management solutions. Serving customers in a wide range of industries both in North America and globally, Veritiv has distribution centers throughout the U.S., Canada 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.veritivcorp.com.
Safe Harbor Provision
Certain statements contained in this press release regarding Veritiv’s strategic plans, the anticipated closing of the transaction, the use of proceeds therefrom and any other statements not constituting historical fact are “forward-looking statements” subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Where possible, the words “believe,” “expect,” “will,” “look forward” or other comparable expressions have been used to identify such forward-looking statements. All forward-looking statements reflect only the company’s current beliefs and assumptions with respect to future results or other events, and are based on information currently available to the company. Accordingly, the statements are subject to significant risks, uncertainties, and contingencies, which could cause actual results or other events to differ materially from those expressed in, or implied by, these statements. Factors that could cause actual results to differ materially from current expectations include the risks and other factors described under “Risk Factors” and elsewhere in Veritiv’s Annual Report on Form 10-K and in Veritiv’s other publicly available reports filed with the Securities and Exchange Commission, as well as the satisfaction of the conditions to closing the transaction. The company is not responsible for updating the information contained in this press release beyond the published date.
SOURCE Veritiv Corporation
For further information: Scott Palfreeman, 844-845-2136, Kristie Madara, 770-391-8471