Apollo Global Taking Chemical Distributor Univar Private for $8.1B

Private equity firm Apollo Global Management will buy specialty chemical distributor Univar Solutions Inc in an all-cash deal valued at $8.1 billion, including approximately $4 billion in debt from nine banks. The transaction includes a minority investment from a wholly owned subsidiary of the Abu Dhabi Investment Authority.

Shareholders of Downers Grove, IL-based Univar will receive $36.15 per share in cash, which represents a 20.6% premium from Monday’s closing price.

The transaction is expected to close in the second half of 2023 and Univar will continue to operate under its name and brand.

“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.

Last year, US hedge fund Engine Capital urged Univar Solutions to consider a sale or other strategic options. In January German chemicals distributor Brenntag ended takeover talks with Univar.

Goldman Sachs & Co. LLC and Deutsche Bank Securities Inc. are serving as financial advisors to Univar Solutions and Wachtell, Lipton, Rosen & Katz is serving as lead counsel to Univar Solutions. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel to the Apollo Funds.