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Apollo Global to buy chemicals firm Univar in $8.1 billion deal

Published 15/03/2023, 01:52 am
© Reuters

By Scott Kanowsky -- Shares in Univar Solutions Inc. (NYSE:UNVR) jumped by more than 12% on Tuesday after the chemical company announced that Apollo Global Management (NYSE:APO) had agreed to take it private for $8.1 billion plus debt.

The purchase, which Apollo struck alongside the Abu Dhabi Investment Authority, values US-based Univar at $36.15 per share, representing a more than 15% premium to the firm's Monday closing price of $31.17.

A spokesperson for Apollo told the Wall Street Journal that the private equity firm's takeover includes a financing package worth more than $4B from nine different banks.

The agreement comes after Univar, the world's second biggest chemical distributor, halted talks over a possible merger with larger rival Brenntag (ETR:BNRGn) in January.

"The Board's decision follows a comprehensive review of value creation opportunities for Univar Solutions," said chairman Chris Pappas in a statement. "We are confident this transaction is the right path forward and achieves our goal of maximizing value for Univar Solutions shareholders."

The transaction, which still requires shareholder and regulatory approval, is expected to close in the second half of 2023, Univar said.

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