PE Deals

Apollo Global to acquire Univar Solutions in $8.1bn deal

Univar Solutions is a global specialty chemical and ingredient distributor.

-
  • Apollo is a high-growth, global alternative asset manager
  • Univar will also get a minority investment from a subsidiary of the Abu Dhabi Investment Authority
  • Apollo managed around $548bn of assets as of 31 December, 2022

Apollo Global has announced that its affiliate Apollo Funds will acquire Univar Solutions, a global specialty chemical and ingredient distributor, in an all-cash transaction at an enterprise value of around $8.1 billion.

Univar Solutions is headquartered in Downers Grove, Illinois.

A wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA) will also make a minority investment in the firm as part of the deal.

Univar Solutions’ shareholders will receive $36.15 per share in cash, a 20.6 percent premium to the firm’s unaffected closing price on 22 November 2022 and a 33.6 percent premium to the 30-day volume-weighted average price of Univar on 22 November 2022.

“Univar is a global leader in specialty chemicals and ingredients distribution, fueling a vast array of industries with innovative, safe and sustainable solutions,” said 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.”

David Jukes is president and chief executive officer of Univar Solutions.

The deal will be funded with the equity provided by the Apollo Funds, a minority equity investment from a wholly owned subsidiary of ADIA and a committed debt financing package, according to a release.

The transaction is likely to be completed in the second half of 2023, subject to regulatory approvals.

Univar’s common stock will no longer be traded on the New York Stock Exchange, and Univar Solutions will become a privately held company post the completion of the sale.

Univar will continue to operate under the Univar Solutions name and brand.

Apollo is a high-growth, global alternative asset manager. The firm managed around $548 billion of assets as of 31 December 2022. It is based in New York.

JP Morgan Securities serves as the lead financial advisor to Apollo.