Australia's Orora to sell North American packaging arm to CD&R-backed Veritiv (updated)

Orora

04/09/2024 24:26

(Adds deal details, background form paragraph 2 onwards)
       Sept 4 (Reuters) - Australian packaging company Orora
 ORA.AX  said on Wednesday it would sell its North American
packaging business to Veritiv, which is backed by private equity
firm Clayton, Dubilier & Rice, for an enterprise value of A$1.78
billion ($1.19 billion).
    Packager Veritiv will buy Orora Packaging Solutions,
resulting in net cash proceeds of nearly A$1.7 billion for
Melbourne-based Orora, it said.
        Orora said last month that it had placed the business
under strategic review.
  
        Veritiv's interest in OPS helped the company to
accelerate its "strategy of becoming a specialty value-added
beverage packaging player", Orora CEO Brian Lowe said.
  
        The company plans to use funds from the sale to reduce
debt and put in A$130 million for the expansion of its Rocklea
cans facility in Queensland. 
  
        
  
    ($1 = 1.4896 Australian dollars)

 (Reporting by Aaditya Govind Rao in Bengaluru; Editing by Maju
Samuel)
 ((Aaditya.GovindRao@thomsonreuters.com;))