Shares of packaging, facility solutions, and print products distributor Veritiv (NYSE:VRTV) are soaring higher today after it agreed to be acquired by an affiliate of Clayton, Dubilier & Rice (CD&R), a private investment firm, at a $2.3 billion valuation.
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Under the deal, Veritiv shareholders will receive $170 in cash for each share of the company held by them. The transaction has received the unanimous approval of the company’s Board and is anticipated to close in the fourth quarter of 2023.
The deal will also require shareholder as well as regulatory approvals to go through and upon closing Veritiv will transition into a privately held company. Further, Veritiv has also announced a quarterly dividend of $0.63 per share. The dividend is payable on September 13 to investors of record on August 17.
Separately, Veritiv is also slated to announce second-quarter numbers tomorrow and is expected to post an EPS of $5.02 on revenue of $1.62 billion for the quarter. In the year-ago period, it had posted an EPS of $7.20, outpacing the Street’s estimates by $2.7.
With today’s gains, Veritiv shares have now surged nearly 51.9% over the past three months.
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