Sept 4 (Reuters) - Australian packaging company Orora ( ORRAF )

said on Wednesday it would sell its North American

packaging business to Veritiv, which is backed by private equity

firm Clayton, Dubilier & Rice, for an enterprise value of A$1.78

billion ($1.19 billion).

Packager Veritiv will buy Orora Packaging Solutions,

resulting in net cash proceeds of nearly A$1.7 billion for

Melbourne-based Orora ( ORRAF ), it said.

Orora ( ORRAF ) said last month that it had placed the business

under strategic review.

Veritiv's interest in OPS helped the company to

accelerate its "strategy of becoming a specialty value-added

beverage packaging player", Orora ( ORRAF ) CEO Brian Lowe said.

The company plans to use funds from the sale to reduce

debt and put in A$130 million for the expansion of its Rocklea

cans facility in Queensland.

($1 = 1.4896 Australian dollars)