Why Veritiv Shares Are Jumping Today

Veritiv Corporation VRTV shares are up 20% as it has entered into a definitive agreement to be acquired by an affiliate of Clayton, Dubilier & Rice, LLC (CD&R).

Under the terms of the agreement, each share of Veritiv will receive $170 per share in cash, representing a premium of over 20% to the last closing price of $141.21.

In addition, the offer represents a 31% premium over Veritiv's 30-day volume-weighted average price of $129.89.

The transaction remains subject to shareholder approval and other customary closing conditions and is expected to be completed in Q4 FY23.

Upon the completion of the transaction, Veritiv will become a privately held company and its shares will no longer be listed on any public markets.

Veritiv’s dividend of $0.63 per share is payable on September 13, 2023, to shareholders of record as of the close of business on August 17, 2023.

Under the terms of the agreement, assuming the transaction closes on or before December 31, 2023, Veritiv will not declare or pay any additional dividends to its shareholders.

Price Action: VRTV shares are trading higher by 19.91% at $169.33 on the last check Monday.