March 14 2023, David R Brown
PE firm, Apollo Global to take Univar private in USD 8.1 billion deal
Following the collapse of talks with Brenntag regarding a merger, Univar Solutions Inc. (NYSE: UNVR) and Apollo (NYSE: APO) have announced that funds managed by affiliates of Apollo have entered into a definitive agreement to acquire the company in a deal that values the business at around USD 8.1 billion. The transaction includes a minority investment from a wholly owned subsidiary of the Abu Dhabi Investment Authority ("ADIA").
The Board's decision follows a comprehensive review of value creation opportunities for Univar Solutions. We are confident this transaction is the right path forward and achieves our goal of maximizing value for Univar Solutions shareholders.
Chris Pappas
chairman of the Univar Solutions Board of Directors
“We are pleased to have reached this agreement with Apollo, which will provide immediate and certain cash value for Univar Solutions shareholders,” said Chris Pappas, chairman of the Univar Solutions Board of Directors. “The Board's decision follows a comprehensive review of value creation opportunities for Univar Solutions. We are confident this transaction is the right path forward and achieves our goal of maximizing value for Univar Solutions shareholders.”
David Jukes, president and chief executive officer of Univar Solutions, said, “Over the last three years, we have transformed the Company, putting the customer at the center of all we do, which has solidified our position as a leading value-added service and solution provider. This transaction reflects the success of our strategy and delivers substantial value to our shareholders. In Apollo, we are pleased to gain a partner to support continued investment in our portfolio and I look forward to working closely with their team as we grow Univar Solutions and serve our key suppliers and customers globally.”
Apollo Private Equity Partner Sam Feinstein said, “Univar is a global leader in specialty chemicals and ingredients distribution, fueling a vast array of industries with innovative, safe and sustainable solutions. In recent years, David and his team have made tremendous progress enhancing the customer experience, and we believe Univar can accelerate its long-term strategy as an Apollo Fund portfolio company. ”
The agreement also shows that private equity interest in the chemical distribution industry remains strong. The last 15 years has seen PE firms such as Advent International, Apax Partners, Bain Capital, Carlyle, Clayton Dubilier & Rice, GS Capital, H.I.G. Capital, Lone Star Funds, One Rock, OpenGate Capital, P2 Capital, SK Capital and TPG Capital having made chemical/plastic distribution acquisitions.
The transaction, which is targeted to close in the 2nd half of the year but it still needs approval from Univar shareholders.
About Univar Solutions
Univar Solutions is a leading global commodity and specialty chemical and ingredient distributor representing a premier portfolio from the world's leading producers. With the industry's largest private transportation fleet and technical sales force, unparalleled logistics know-how, deep market and regulatory knowledge, formulation and recipe development, and leading digital tools, the Company is well-positioned to offer tailored solutions and value-added services to a wide range of markets, industries, and applications. In 2022 Univar reported revenues of USD 11,475 million and had 9,476 employees.
Source(s): Univar Solutions Press Release