Leading Distribution Solutions Company to be Named Veritiv Following Completion of Merger of xpedx and Unisource
Transaction Expected to Close in Early Third Quarter
20 May, 2014, 04:30 ET
MEMPHIS, Tenn. and NORCROSS, Ga., May 20, 2014 /PRNewswire/ -- xpedx, a business of International Paper (NYSE: IP) and Unisource Worldwide, Inc., today announced that they have chosen the name Veritiv for the leading distribution solutions company that will be created upon completion of their merger. The name Veritiv comes from the roots of three words: "verity", meaning true, and "active" and "connective". Common stock of the new company is expected to trade on the New York Stock Exchange under the symbol VRTV.
"The name of our combined company reflects the core strength of our new organization – our commitment to deliver with excellence and shape our customers' success," said Mary Laschinger, who will serve as Veritiv's Chairman and Chief Executive Officer. "Veritiv will meet and exceed our customers' expectations by providing them with the end-to-end print, packaging, facility and logistic solutions they need to make their key business operations more efficient and more sustainable. We look forward to completing the transaction and leveraging Veritiv's broad geographic reach, extensive product offerings and differentiated and leading service platform."
As previously announced, Unisource and xpedx have agreed to merge to create a leading North American business-to-business distribution company. The company will begin operating under the name Veritiv and will introduce its new brand/logo immediately after the closing of the transaction, which is expected to occur early in the third quarter of 2014, upon satisfaction of the remaining closing conditions.
Upon completion of the merger, which is being facilitated through a Reverse Morris Trust structure, the new company will have projected annual revenue in the range of $9 to $10 billion and will have approximately 9,500 team members across more than 170 distribution centers in North America. The combination is expected to generate approximately $150 million to $225 million in annual net synergies.
About Unisource Worldwide, Inc.
Unisource Worldwide, Inc., headquartered in Norcross, Ga., helps enterprise-level companies improve bottom-line performance by providing innovative, sustainable, highly efficient solutions across the life cycle of core business operations, including product packaging and fulfillment, paper and print management, general supply chain and logistics, and facility supplies solutions. Unisource has offices and operations in key locations around the world, and is currently ranked as one of the largest privately held companies in the United States. With a global workforce of approximately 4,300 team members located throughout business units in the United States, Canada, Europe and Asia; and more than 17 million square feet of supply chain capacity and a fleet of "Big Red" trucks based at approximately 90 warehouse locations across North America, Unisource is a partner to many of today's leading global organizations. Unisource can be found online at www.unisourceworldwide.com.
Cincinnati, Ohio-based xpedx, a business of International Paper (NYSE: IP), is one of the largest business-to-business distribution companies in North America. xpedx distributes a wide variety of printing, packaging, and facility supplies and equipment to printers, manufacturers, retailers and commercial facilities from locations across North America. For more information about xpedx, its business segments and stewardship efforts visit www.xpedx.com.
About International Paper
International Paper (NYSE: IP) is a global leader in packaging and paper with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include industrial and consumer packaging and uncoated papers. Headquartered in Memphis, Tenn., the company employs approximately 70,000 people and is strategically located in more than 24 countries serving customers worldwide. International Paper net sales for 2013 were $29 billion. For more information about International Paper, its products and stewardship efforts, visit www.internationalpaper.com.
FORWARD LOOKING STATEMENTS
Certain statements in this press release regarding the agreed-upon transactions may be considered "forward-looking statements," such as statements relating to expectations for Veritiv, whether and when the transactions will close, the expected revenue of Veritiv and the amount of expected cost savings and other synergies to be generated. These statements may also be identified by words such as "intend," "expect," "anticipate," "will," "implied," "designed," "assume" and similar expressions. These statements reflect the current views of the management of International Paper, Unisource and Veritiv (currently known as xpedx Holding Company) and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. Factors which could cause actual results to differ include but are not limited to: (i) the successful fulfillment or waiver of all closing conditions without unexpected delays or conditions; (ii) the successful closing of the transactions within the estimated timeframes; (iii) industry conditions, including but not limited to changes in the cost or availability of raw materials, energy and transportation costs, competition the companies face, cyclicality and changes in consumer preferences, demand and pricing for the companies' products; (iv) global economic conditions and political changes; and (v) other factors that can be found in each company's press releases and filings with the Securities and Exchange Commission. The companies undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. This release does not constitute an offer to sell or the solicitation of an offer to buy any securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.
SOURCE Unisource Worldwide, Inc.; xpedx
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