The New York-based private equity firm Clayton, Dubilier & Rice announced today that it has completed its transaction to acquire a 42.5% stake in Univar, a San Jose, Calif.-based chemicals distributor, in a deal that values the company at $4.2 billion.
Clayton, Dubilier & Rice, LLC today completed a transaction in which CD&R-managed funds acquired a 42.5% ownership interest in Univar, a leading global distributor of commodity and specialty chemicals to a broad array of end markets. The transaction values Univar at approximately $4.2 billion. Funds
advised by CVC Capital Partners will retain a 42.5% stake in the business. The remaining equity is held by Univar management and other existing investors.
With 2009 revenues of $7.2 billion, Univar is a market-leading distribution platform serving highly fragmented and diverse markets and customers. The company operates a network of 179 distribution facilities and distributes more than 11,000 products and 110,000 SKUs to over 80,000 customers in more than 100 countries. Univar has the #1 market position in the U.S. and Canada and the #2 position in Europe.
John Zillmer continues as Univar’s President and Chief Executive Officer. CD&R’s advisory operating partner William S. Stavropoulos, former chairman and chief executive officer of The Dow Chemical Company, has assumed the role of non-executive Chairman of Univar.
In October, Univar announced an agreement to acquire Basic Chemical Solutions, L.L.C., a global distributor and trader of commodity chemicals for the chemical manufacturing, water treatment, food & beverage, pulp & paper, energy, and general manufacturing end markets. BCS serves 6,700 customers and approximately 10,000 ship-to locations in 57 countries. The BCS acquisition, which is expected to close by year-end, will further strengthen Univar’s ability to provide value in the supply chain between chemical producers and end-users as well as reinforce Univar’s global sourcing capabilities.
About Clayton, Dubilier & Rice
Founded in 1978, Clayton, Dubilier & Rice is a private equity firm with an investment strategy predicated on producing superior financial returns through building stronger, more profitable businesses. The Firm’s professionals include a combination of financial and operating executives. Since inception, CD&R has managed the investment of more than $14 billion in 48 U.S. and European businesses representing a broad range of industries with an aggregate transaction value of over $70 billion. CD&R has a long history of investing in market-leading distribution businesses, including VWR International, a leading global distributor of laboratory supplies, U.S. Foodservice, the
second largest broadline foodservice distributor in the United States, Rexel, the leading distributor worldwide of electrical supplies, and Diversey, a leading global manufacturer and distributor of commercial cleaning, sanitation and hygiene solutions. CD&R recently completed the acquisition of HGI Holding, Inc., a leading medical supplies distributor, and announced the acquisition of Tyco International’s Electrical and Metal Products business (to be renamed Atkore International). The Firm has offices in New York and London. For more information, please visit www.cdr-inc.com.
About CVC Capital Partners
CVC is one of the world’s leading private equity and investment advisory firms. Founded in 1981, CVC has a network of 20 offices and over 240 employees throughout Europe, Asia and the United States.
CVC Funds, raised from pension funds, financial institutions and various other partners, seek to identify attractive investments and then develop sustainable, long-term value in close partnership with management teams. To date, CVC has raised over US$44 billion from a diverse and loyal investor base, completing in total over 280 investments in a wide range of industries and countries. Currently CVC manages over US$39 billion and is investing from CVC Tandem Fund, CVC Fund V and CVC Asia III, with an aggregate of US$12 billion in available equity capital.
Today, CVC Funds own 54 companies worldwide, employing over 400,000 people in numerous countries. Together, CVC portfolio companies have combined annual sales of over $110 billion.
CVC believes that the effective ownership and management of a company creates benefits for all stakeholders, from employees to customers, suppliers to shareholders, and the wider community at large. CVC actively encourages its portfolio companies to respect all stakeholder groups and to be responsible corporate citizens. For more information, visit www.cvc.com.
Univar is one of the world’s leading distributors of industrial and specialty chemicals. Univar represents over 2,500 chemical producers and provides its customer base, made up of 80,000 customers, with a full portfolio of products. Univar operates a network of 179 facilities in North America, Europe, the Asia-Pacific region, and Latin America, with additional sales offices located in Eastern Europe, the Middle East, and Africa. In 2009, Univar reported sales of $7.2 billion. For more information, visit: www.univar.com.
About Basic Chemical Solutions, L.L.C.
Basic Chemical Solutions, L.L.C. (BCS) is a U.S.-based global distributor and trader of commodity chemicals. With roots dating back almost 50 years, BCS has established a worldwide infrastructure with 29 offices in 15 countries on 4 continents, and another 46 owned or contracted chemical terminal locations. BCS’ focus on inorganic mineral acids and bases includes some of the most broadly used chemicals in the world such as caustic soda, bleach and sulfuric and hydrochloric acid. BCS’ core product line is augmented in the U.S. by the Performance Chemical Division and internationally by the availability of a range of other chemical intermediates. In 2009, BCS reported sales of $889 million. For more information, visit: www.basicchem.com.