Apollo Global to Buy Univar in $8.1bn Deal

Mar 16, 2023 | News

Apollo Global Management has agreed to acquire chemical maker Univar Solutions Inc. for $8.1bn including debt.

Univar shareholders will receive $36.15 a share, the companies said in a statement. The all-cash transaction is expected to close in the second half of the year. Univar shares rose 12% to $34.96 at 2:01 p.m. in New York trading, giving it a market value of about $5.5 billion.

The transaction includes a minority investment from a wholly owned subsidiary of the Abu Dhabi Investment Authority, according to the statement.

Univar, based in Downers Grove, Illinois, has been on the sales block, with competitor and German chemicals distributor Brenntag SE dropping plans for a bid earlier this year. Univar terminated those discussions in January, saying it would continue talks relating to “other indications of interest.

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Univar had attracted interest from another buyout firm, Platinum Equity, as well as Apollo, Bloomberg News reported in January.

With one of largest private transportation fleets for chemicals, Univar distributes industrial and specialty chemical products. The company merged with rival Nexeo Solutions Inc. in 2019 and then sold its plastics-distribution business that year.

“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,” Univar Chief Executive Officer David Jukes said in the statement.

Goldman Sachs & Co and Deutsche Bank Securities Inc. served as Univar’s financial advisers, with Wachtell, Lipton, Rosen & Katz providing legal advice. JPMorgan Chase & Co. was the lead financial adviser to Apollo, with Paul, Weiss, Rifkind, Wharton & Garrison acting as legal adviser.

Source: BNN Bloomberg

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