Univar Solutions to go private after US$8.1B merger mega-deal with Apollo Funds

15 Mar 2023 --- Private equity company Apollo Global Management’s affiliate Apollo Funds has entered into a definitive merger agreement to acquire chemical and ingredients distributor Univar Solutions, in an all-cash transaction totaling approximately US$8.1 billion. This transaction will be financed alongside a minority investment from a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA).

The transaction is expected to close in the second half of the year and as a result, Univar Solutions will become a privately held company.

Under the agreement, Univer Solutions announced shareholders will receive US$36.15 per share in cash – making the stock soar over 13% after the deal was announced.

“Over the last three years, we have transformed the company, putting the customer at the center of all we do. This 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,” says David Jukes, president and CEO at Univar Solutions.

“It is a testament to the tireless efforts of my colleagues, whose commitment to our purpose of helping keep our communities healthy, fed, clean and safe has enabled our success. In Apollo, we are pleased to gain a partner to support continued investment in our portfolio. I look forward to working closely with their team as we grow Univar Solutions and serve our key suppliers and customers globally.”

In earlier takeover talks of Univar Solutions, Brenntag confirmed the possibilities of a deal last November. However, Brenntag pulled out of these discussions early this year. The transaction will be financed by ADIA and Apollo Funds (Image credit: Univar Solutions).

Board’s decision
The Univar Solutions Board has unanimously approved the merger agreement. 

“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 at 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.”

Univer Solutions explains that once the transaction is complete, its shares of common stock will not be traded on the New York Stock Exchange.

Univar’s potential
After the transaction is complete, Univar Solutions will continue to operate with the same brands worldwide.

“Univar is a global leader in specialty chemicals and ingredients distribution, fueling vast industries with innovative, safe and sustainable solutions,” says Sam Feinstein, Apollo private equity partner.

“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.”

Tracking the chemical company
Univar Solutions has been acquiring and partnering as part of its global expansion strategy.Univar Solutions will become a privately held company (Image credit: Univar Solutions).

The company recently inked an agreement to acquire Kale Kimya, a prominent Turkish distributor of specialty chemicals. The closing of the acquisition is expected to close in the first quarter of 2023.

“This acquisition strengthens our strategy for growing the ingredients and specialty business with a leading company that leverages and strengthens our strengths, geographic presence and product portfolio,” said Nick Powell, president of Global Ingredients and Specialties at Univar Solutions.

The company also expanded its polymer business to Europe by advancing its distribution partnership with China-based Boai Nky Pharmaceuticals. It included dye transfer inhibitors for liquid and powder detergent formulations.

Further in home care development, Univar Solutions expanded its distribution agreement with home and personal care and chemical company Angus.

Last March, the company strengthened its distribution partnership with Dow to distribute Dow Organics’ personal care and beauty brands in Brazil, alongside opening a Solution Center in Essen, Germany, to assist ingredient and specialty chemical research and product formulation application development across Europe.

By Venya Patel