ATLANTA (News release) -- Veritiv Corporation, a full-service provider of business-to-business products, services and solutions, announced 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.
News release from Imperial Dade:
JERSEY CITY, N.J. -- Imperial Dade, a leading distributor of food service packaging and janitorial supplies, has entered into a definitive agreement to acquire Veritiv Canada, Inc. ("Veritiv Canada" or the "Company"). The transaction represents the 47th acquisition for Imperial Dade under the leadership of Robert and Jason Tillis, CEO and President of Imperial Dade, respectively.
Headquartered in Toronto, ON, Canada, with eleven other locations covering all of Canada, Veritiv Canada is a full-service provider of janitorial and hygiene products print and food service packaging solutions. The management team has built a strong reputation for its knowledgeable sales force, wide breath of products, and high touch customer service. Now in partnership with Imperial Dade's market leading platform, Veritiv Canada's customers can expect the same exceptional customized service coupled with an even greater offering of products and solutions.
"We are extremely excited to be entering the Canadian marketplace with such a reputable organization. We look forward to partnering with the Veritiv Canada team and continuing to provide customers with a world-class value proposition and service offering under the Imperial Dade banner. This acquisition is an exciting next step in our ability to serve customers across all of North America," said Jason Tillis, President of Imperial Dade.
About Imperial Dade
Founded in 1935, Imperial Dade serves more than 75,000 customers across North America. Since CEO Robert Tillis and President Jason Tillis assumed their roles in 2007, the company has grown both organically and through acquisitions to become a leader in the food service packaging and janitorial supplies industry. For additional information, please visit www.imperialdade.com.
