Veritiv Corporation, a specialty distributor of packaging and print products and a portfolio company of Clayton, Dubilier & Rice, has acquired Vivabox Solutions, from Lion Equity Partners.
Vivabox provides specialized marketing and kitting services to retail businesses across numerous consumer product categories. The company’s primary focus is multi-branded “sample boxes” for retailers including, among many others, Michael Kors, Johnson & Johnson, Coach, Calvin Klein, Tiffany and Estee Lauder.
Vivabox’s services include ideation, design, project management, kitting, sourcing, and distribution. The Rockville, Maryland-headquartered company, led by CEO Desiree Paquette, has 77 employees with additional locations in Dallas, Scottsdale, San Fransisco, and Paris.
Lion Equity, through its second fund, acquired Vivabox as a corporate carve-out from Sodexo Group, a provider of products and services to the sample and subscription box industry, in August 2017. Under Lion Equity ownership, the business was transitioned from a division of Sodexo into a standalone company serving the premium kitting and packaging sector.
“We are proud of the tremendous growth of Vivabox under our ownership and believe they are well positioned to succeed as part of Veritiv,” said Jim Levitas, a co-founder and partner of Lion Equity. “Our investment in Vivabox is a great example of how Lion Equity’s carve-out expertise and operational rigor combine to create enterprise value throughout the entire investment lifecycle.”
Atlanta-headquartered Veritiv, acquired by CD&R in November 2023, is a business-to-business distributor of packaging, janitorial, sanitation and hygiene products, food service disposables, print, and publishing products. The company, with annual revenues of above $6 billion, has distribution centers throughout the United States and Mexico. Veritiv’s buy of Vivabox adds to the company’s existing capabilities in kitting and design and adds experience luxury and premium consumer brands.
“This acquisition leverages our leadership and expertise in packaging distribution and commercial operations and represents an investment in building on our existing industry-leading kitting and assembly capabilities to better serve our customers,” said Sal Abbate, the chief executive officer of Veritiv. “Like Veritiv, Vivabox services businesses with complex packaging and supply chain needs. Their ability to deliver customized solutions and enhanced value-added services makes them a strong addition to our packaging segment.”
Denver-based Lion Equity makes control investments in North American-based corporate carve-outs and special situations including businesses experiencing financial, operational or industry-driven challenges. Typical targets will have revenues between $30 million and $300 million and EBITDA up to $15 million. Lion Equity invests across a wide range of sectors and is effectively industry agnostic.
New York and London-based CD&R invests in European and United States-based businesses. Since its founding in 1978, the firm has invested more than $40 billion in over 100 companies across a range of industries including industrials, healthcare, business services, consumer, technology and financial services.
Mesirow Financial was the financial advisor to Lion Equity on the sale of Vivabox.
© 2024 Private Equity Professional | February 28, 2024
