Veritiv Corporation (NYSE: VRTV), a full-service B2B provider, says it has signed a definitive purchase agreement to sell its Veritiv Canada, Inc. business to food service packaging and janitorial supply distributor Imperial Dade.
Financial details were not disclosed, but Veritiv said it 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. When the deal closes, Veritiv’s approximately 900 employees in Canada will become employees of Imperial Dade, Veritiv said in its announcement.
“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 CEO. “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.”