UPDATE 1-Packaging firm Veritiv Corp to be bought by CD&R for $2.3 billion

(Adds shares in the 2nd paragraph, terms of the deal in paragraphs 3 & 4)

Aug 7 (Reuters) - Packaging solutions firm Veritiv Corp said on Monday it has agreed to be bought by private equity firm Clayton, Dubilier & Rice, LLC (CD&R) for $2.3 billion, in a deal that would take the company private.

Shares of Veritiv were up almost 20% in premarket trade in low volumes.

Under the terms of the agreement, CD&R would pay $170 per in cash for each share of Veritiv common stock, representing a nearly 20% premium to its last close.

Up on closing of the deal, expected in the fourth quarter of 2023, Veritiv's stock will no longer be listed on any public markets.

Morgan Stanley & Co served as exclusive financial advisor for Veritiv. (Reporting by Kannaki Deka in Bengaluru; Editing by Shailesh Kuber)