Veritiv announced it has entered into a binding agreement with Orora (ASX: ORA) to acquire the North American packaging and distribution business Orora Packaging Solutions (OPS)1. This strategic acquisition will further position Veritiv as a leading provider of value-added products and solutions in specialty packaging distribution in North America.
Australia's Orora in a press release said it is selling OPS to Veritiv for an enterprise value of A$1.78 billion ($1.19 billion).
"The combination of Veritiv and Orora Packaging Solutions will significantly enhance the value we deliver to our customers," said Sal Abbate, Chief Executive Officer of Veritiv. "By uniting two successful players with a shared commitment to innovation, sustainability, and exceptional customer experiences, we are poised to offer a wide range of products and value-added solutions that meet even the most complex packaging and supply chain needs.
"Our complementary business strategies and core values make this partnership a natural fit, and I am confident the integration will create a stronger, more agile organization that sets new standards for excellence. We are excited to bring together the talented employees, loyal customers, and trusted suppliers of both Veritiv and Orora Packaging Solutions, and we look forward to collaborating as one unified team," Abbate said.
Brian Lowe, Orora Managing Director and Chief Executive Officer, added, "Today's announcement represents a significant new era for the OPS business as it transitions to Veritiv ownership. We are extremely proud of the way the OPS team has grown the business while part of the Orora Group and believe this is an exciting opportunity to join an industry leader in the North American packaging distribution market with differentiated capabilities."
The transaction is subject to regulatory approvals and satisfaction of other customary closing conditions and is expected to be completed in the fourth quarter of 2024.
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