Apollo Funds Acquiring Univar Solutions
Specialty chemical and ingredient distributor Univar Solutions recently announced that it has entered into a definitive merger agreement to be acquired by asset manager Apollo. The acquisition is an all-cash transaction that reportedly values Univar at an enterprise value of approximately $8.1 billion.
“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.”
“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,” said David Jukes, President and Chief Executive Officer of Univar Solutions.
Additionally, the transaction includes a minority investment from a wholly owned subsidiary of the Abu Dhabi Investment Authority. The merger agreement was unanimously approved by the Univar Board of Directors.
According to the release, the agreement provides that Univar shareholders will receive $36.15 per share in cash, which represents a 20.6% premium to its undisturbed closing stock price on Nov. 22, 2022. The transaction consideration also represents a premium of 33.6% to the volume-weighted average price of Univar Solutions for the 30 trading days ending on Nov. 22, 2022.
“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,” said Apollo Private Equity Partner Sam Feinstein.
The transaction is expected to close in the second half of 2023.
