Veritiv Corporation to Clayton, Dubilier & Rice, LLC

Industrials/Aug 2023/Morgan Stanley

Deal Information

Target

Veritiv Corporation

Acquiror

Clayton, Dubilier & Rice, LLC

Sector

Target Type

Public

Acquiror Type

Financial

Advisors

Morgan Stanley

Enterprise Value

$2.5B

EV / LTM Sales

EV / LTM EBITDA

5.3x

EV / Fwd EBITDA

Comparable transactions cited by the advisor, excluding the subject transaction.

AV / LTM EBITDA selected range: 7.5x - 11.0x

8 comps

Discount rate and terminal value assumptions the advisor selected for its discounted cash flow analysis.

WACC: 10.8% – 12.6%
Terminal method: Exit multiple
Terminal assumption: 4.5x – 6.5x (terminal AV / Adjusted EBITDA ($412 million; 6.5% normalized margin))
Forecast basis: Management Case
Forecast period: second half of calendar 2023 through calendar 2027

Advisor	WACC	Terminal method	Terminal assumption	Forecast basis	Forecast period	Filing
Morgan Stanley	10.8% – 12.6%	Exit multiple	4.5x – 6.5x (terminal AV / Adjusted EBITDA ($412 million; 6.5% normalized margin))	Management Case	second half of calendar 2023 through calendar 2027	Open