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The Board of Directors of Veritiv Corporation has approved an expansion of the restructuring plan previously announced on July 9, 2020, according to a Form 8-K filed on December 21, 2020. The Company said it has commenced the 2020 Restructuring Plan earlier this year in response to the impact of the COVID-19 pandemic on its business operations and the ongoing secular changes in the Company’s Print and Publishing segments. The Expansion will result in the closure of additional warehouse facilities, repositioning of inventory to expand service radius and other actions. The Company expects the Expansion to generate incremental annualized savings, including supply chain productivity improvements, in the range of approximately $12 to $22 million beginning in 2021, in addition to the $80 to $90 million of expected annualized savings associated with the 2020 Restructuring Plan, as announced in July.
Veritiv estimates the Expansion will result in additional cash expenditures and charges of between $17 and $33 million. The Company also estimates that the 2020 Restructuring Plan, as expanded, will result in total cash expenditures and charges of between $77 and $101 million up slightly from the $75 to $90 million announced in July.
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