- Univar Solutions Inc. (NYSE: UNVR) announced it is being acquired by Apollo (NYSE: APO) for $8.1 billion. These are the details.
Univar Solutions Inc. (NYSE: UNVR) and Apollo (NYSE: APO) announced that funds managed by affiliates of Apollo have entered into a definitive merger agreement to acquire the Company in an all-cash transaction that values the company at an enterprise value of approximately $8.1 billion. The deal includes a minority investment from a wholly-owned subsidiary of the Abu Dhabi Investment Authority (“ADIA”).
This agreement provides that Univar Solutions shareholders will receive $36.15 per share in cash, which represents a 20.6% premium to the company’s undisturbed closing stock price on November 22, 2022. The deal consideration also represents a premium of 33.6% to the volume-weighted average price of Univar Solutions for the 30 trading days ending on November 22, 2022.
Deal Details
The merger agreement, which has been unanimously approved by the Univar Solutions Board of Directors, provides that Univar Solutions shareholders will receive $36.15 in cash for each share of common stock they own. And this deal will be financed with equity provided by the Apollo Funds, a minority equity investment from a wholly owned subsidiary of ADIA, and a committed debt financing package.
The deal is expected to close in the second half of 2023, subject to customary closing conditions, including approval by Univar Solutions shareholders and receipt of regulatory approvals. The transaction is not subject to a financing condition.
Upon completion of the deal, shares of Univar Solutions common stock will no longer trade on the New York Stock Exchange, and Univar Solutions will become a privately held company. Univar Solutions will continue to operate under the Univar Solutions name and brand and maintain a global presence.
The foregoing description of the merger agreement and the transactions contemplated thereby is subject to, and is qualified in its entirety by reference to, the full terms of the merger agreement, which Univar Solutions will file with the U.S. Securities and Exchange Commission as an exhibit to a Current Report on Form 8-K.
KEY QUOTES:
“We are pleased to have reached this agreement with Apollo, which will provide immediate and certain cash value for Univar Solutions shareholders. 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.”
- Chris Pappas, chairman of the Univar Solutions Board of Directors
“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. It is a testament to the tireless efforts of my colleagues, whose commitment to our purpose of helping keep our communities healthy, fed, clean, and safe has enabled our success. In Apollo, we are pleased to gain a partner to support continued investment in our portfolio and I look forward to working closely with their team as we grow Univar Solutions and serve our key suppliers and customers globally.”
- David Jukes, president and chief executive officer of Univar Solutions
“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. We look forward to leveraging our extensive experience in the sector to support management in this exciting next phase.”
- Apollo Private Equity Partner Sam Feinstein
