Veritiv, a US-headquartered speciality packaging distribution company, has announced a binding agreement to acquire Orora Packaging Solutions (OPS). 

The financial terms of the agreement remain undisclosed. 

With headquarters in Buena Park, California, OPS is also a North American packaging and distribution business.  

The company operates nearly 70 distribution and manufacturing facilities and employs roughly 3,000 people. 

This strategic move is set to bolster Veritiv's position as a distributor of value-added speciality packaging products and solutions in North America. 

Veritiv CEO Sal Abbate said: "The combination of Veritiv and Orora Packaging Solutions will significantly enhance the value we deliver to our customers. 

"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."

The transaction is subject to regulatory approvals and other customary closing conditions, with completion anticipated in the fourth quarter (Q4) of 2024.  

Veritiv has secured committed financing from its existing lender group, which includes BMO Capital Markets, Goldman Sachs Bank USA, RBC Capital Markets, UBS Investment Bank, Wells Fargo, and Morgan Stanley. 

Goldman Sachs & Co and Morgan Stanley & Co have taken the lead as financial advisors to Veritiv, with Kirkland & Ellis and Debevoise & Plimpton providing legal counsel. 

OPS managing director and CEO Brian Lowe said: "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." 

In April this year, Veritiv acquired the Ameripac and Ameripac Pennsylvania businesses for undisclosed terms.