New PE owner for Univar

Private equity giant Apollo has agreed to acquire the majority of Univar Solutions in an all-cash deal that values the company at about $8.1 billion. There is also an unspecified minority investment from a wholly owned subsidiary of the Abu Dhabi Investment Authority.

Shareholders will receive $36.15/share in cash, which represents a 20.6% premium to the company's undisturbed closing stock price on 22 November 2022 or 33.6% on the volume-weighted average for the 30 trading days ending on that date.

“Over the last three years, we have transformed the company, putting the customer at the centre of all we do, which has solidified our position as a leading value-added service and solution provider,” claimed CEO David Jukes. “This transaction reflects the success of our strategy and delivers substantial value to our shareholders.”

The deal is expected to close in 2H 2023, subject to customary closing conditions, including approval shareholder and regulatory approvals. Following completion, the company will be privately owned and will be removed from the New York Stock Exchange. There will be no change to the branding.

In late 2022, Brenntag, the only larger distributor of chemicals than Univar, made an approach to it to merge. However, this was rapidly scuppered by ‘activist’ shareholders after the news caused Brenntag’s share price to fall, while Univar’s rose. Brenntag is now evaluating other options.