Apollo Global Management to acquire Univar Solutions for $8.1 billion

DOWNER'S GROVE, Ill.—Following months of reported talks, Apollo Global Management has agreed to acquire Downers Grove-based distributor Univar Solutions for $8.1 billion, the company announced March 14.

The deal, described as an "all cash transaction," also includes "a minority investment from a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA)." The agreement also values shares of Univar at $36.15 which the company says "represents a 20.6 percent premium to the company's undisturbed closing stock price on November 22, 2022."

In the news release announcing the merger, Chris Pappas, chairman of Univar's board of directors, said: "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."Univar offers elastomer materials including silicone elastomers and silanes, plus antioxidants, plasticizers, accelerators, flame retardants and processing aids.

Univar briefly had a larger plastics portfolio in 2018, when it purchased Nexeo Solutions Inc. for $1.8 billion. But the company immediately sold Nexeo's plastics distribution business to One Rock Capital Partners L.L.C. That business has since been renamed Nexeo Plastics LLC and is based in The Woodlands, Texas.

Univar President and CEO David Jukes added: "This transaction reflects the success of our strategy and delivers substantial value to our shareholders. ... 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."

The deal is expected to close in the second half of this year.

Earlier this year, it was reported that Univar had been in talks with potential suitors, including Apollo and Platinum Equity, over a purchase.

German chemical distributor—and Univar rival—Brenntag SE explored purchasing the company, but Univar ended those talks in January.