Univar Solutions to go private in $8.1bn deal with Apollo Funds

Univar Solutions, an American specialty chemical and ingredient distributor, has agreed to be acquired by funds managed by affiliates of Apollo (Apollo Funds) in an all-cash deal worth around $8.1 billion.

The deal includes a minority investment from one of the fully-owned subsidiaries of the Abu Dhabi Investment Authority (ADIA). It will be funded with equity provided by the Apollo Funds along with a minority equity investment from ADIA’s subsidiary, as well as a committed package of debt financing.

As per the terms of the agreement, shareholders of the New York Stock Exchange (NYSE) listed Univar Solutions will be paid $36.15 per share in cash. This is a premium of 20.6% to the undisturbed closing stock price of the specialty chemical and ingredient distributor on 22 November 2022.

The consideration for the deal also represents a 33.6% premium to Univar Solutions’ volume-weighted average price for the 30 trading days ending on 22 November 2022.

David Jukes — Univar Solutions president and CEO 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.”

Upon closing of the deal, shares of Univar Solutions will be delisted from NYSE and operate as a privately held company and retain both its name and brand.

Sam Feinstein — Apollo Private Equity Partner 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. We look forward to leveraging our extensive experience in the sector to support management in this exciting next phase.”

Subject to approval from Univar Solutions’ shareholders, regulatory approvals, and other customary conditions, the deal is expected to close in the latter half of this year.

Earlier this year, Univar Solutions announced the acquisition of Turkish specialty chemicals distributor Kale Kimya.