On Aug. 7, packaging, facility solutions and print products distributor Veritiv Corporation announced that it had reached a deal with the private investment firm in which an affiliate of CD&R will acquire Veritiv for approximately $2.3 billion.

With 2022 revenue of $7.1 billion, Veritiv appeared on MDM’s 2023 Top JanSan Distributors List (unranked).

The deal represents a 31% premium over Atlanta-based Veritiv’s 30-day average stock price of $129.89 and about a 20% premium over Aug. 7’s closing price of $141.21. Each share of Veritiv common stock will be entitled to receive $170 in cash immediately following transaction closing, which is expected in 2023’s fourth quarter.

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“This agreement is a pivotal moment in Veritiv’s history,” Veritiv Chief Executive Officer Sal Abbate said in a news release. “CD&R’s interest in our company is a testament to our team’s hard work, innovation and dedication. Fueled by this partnership, we will continue to evolve towards our greatest potential, delivering innovative and sustainable solutions to our customers today — and into the future.”

The deal is contingent upon shareholder approval and other customary closing conditions.

Packaging products accounted for 55% of Veritiv’s 2022 revenue, followed by Print Solutions at 34% and Facility Solutions at 11%. The company had $338 million in 2022 net profit; $518 million in adjusted EBITDA and 7.2% adjusted EBITDA margin.

Veritiv ended 2022 with approximately 5,000 employees across 95 distribution centers.

Veritiv reports its 2023 second quarter financial results on Aug. 8.

The deal marks just the latest distribution sector major investment for CD&R. Here’s a rundown of the recent acquisitions the firm has made in the industries MDM covers: 

• In 2021, the firm bought Wolseley UK from Ferguson for $417.5 million; 
• In 2020, CD&R bought enterprise software giant Epicor for $4.7 billion 
• Also in 2020, CD&R bought White Cap from HD Supply for $2.9 billion, later combining it with fellow distributor Construction Supply Group to form present-day White Cap — No. 10 on MDM’s 2023 Top Industrial Distributors List and No. 8 for Building Materials/Construction distributors; 
• In 2017, CD&R bought HD Supply’s Waterworks division for $2.5 billion and rebranded it as Core & Main — No. 9 on MDM’s Top Industrial Distributors and No. 1 for Industrial PVF;
• Also in 2017, CD&R bought SunSource — No. 2 on MDM’s Top Fluid Powers distributors or an undisclosed amount