Orora Limited, an Australian packaging materials company, has entered into a legally binding agreement to sell Orora Packaging Solutions (OPS) to investment company Veritiv Corp. This is reported in the Orora press release.
The transaction value is 1.77 billion Australian dollars ($1.2 billion).
Veritiv is a subsidiary of Clayton, Dubilier & Rice, LLC (CD&R), which acquired the assets of Veritiv for $2.3 billion in 2023.
The deal is in line with Orora's strategic plans to increase the company's value to shareholders. As a result of the deal, Orora will become a specialized beverage packaging manufacturer with a leading position in the market and a stable balance for organic growth, including the implementation of additional projects by attracting investments in the amount of $130 million, which will increase the production of cans in Rocklea (Queensland) by more than 30%.
Following the completion of the transaction, Orora intends to focus on debt reduction and profit sharing among shareholders in a tax-efficient way to ensure a balance sheet consistent with the global beverage packaging business.
Veritiv Corp. – an American distributor of a full range of packaging, as well as sanitary products and services for the food industry, healthcare, entertainment industry, etc. In addition, the company supplies printed materials to businesses and owns 150 distribution centers in the United States, Canada and Mexico. The headquarters is located in Atlanta (Georgia).
Orora Limited is an Australian company for the production and sale of packaging products. The company offers packaging materials and beverage cans in Australia and Asia, as well as packaging distribution services in North America and Australia. The headquarters is located in Hawthorne (Victoria, Australia) with offices in New Zealand, North America, China and the United Kingdom.
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