NORCROSS, GA--Unisource Worldwide, Inc. and xpedx will merge under the terms of a definitive agreement that will result in the creation of a new publicly traded company. The agreement to merge the two businesses was signed by International Paper, parent company of xpedx, and by UWW Holdings, Inc. the holding company of Unisource and owned indirectly by an affiliate of Bain Capital and by Georgia-Pacific, as well as affiliates.
Upon the expected completion of the merger in mid-2014, the new company will have projected annual revenue in the range of $9 billion to $10 billion and will have about 9,500 team members across more than 170 distribution centers in North America. The new company is expected to generate approximately $200 million in synergies.
Allan Dragone, chief executive officer of Unisource, said, “This merger will create a new company with unique capabilities that will enable better service to customers across their core business segments of packaging, print and facility solutions. Building upon the strengths of both Unisource and xpedx, we believe the new company will be able to accelerate and enhance top line growth opportunities across a complementary portfolio.”
Seth Meisel, a member of the Unisource board of directors and a managing director at Bain Capital, stated, “By bringing together these two businesses, we will be able to provide customers with innovative solutions and ideas to solve their toughest challenges in product packaging and fulfillment, paper and print management, supply chain and logistics services, and facility solutions. The new company will offer an unmatched combination of reach, product depth and service capabilities.”
Executive offices will be located in the greater Atlanta area. In addition, the new company will retain the two existing operational headquarters of the legacy companies in Norcross, Ga., and Loveland, Ohio.
Mary Laschinger, currently president, xpedx, and senior vice president, International Paper, will be the chief executive officer and chairman of its board of directors. Dragone will serve as a director of the new company and will advise on integration activities. The other directors will be: