Private equity firm Apollo to buy distributor Univar

Abstract

The private equity firm Apollo has agreed to acquire Univar Solutions, the world’s third-largest chemical distributor, for $8.1 billion. Univar has been in play since late November, when it and the world’s largest chemical distributor, Brenntag, disclosed that they were discussing a possible merger. The firms called off those talks in January , with Univar remarking that it was evaluating “other indications of interest” from possible buyers. Funds managed by Apollo will pay $36.15 per share for Univar, a premium of about 20% over Univar’s stock price on Nov. 22, before the market became aware of the merger talks. Engine Capital, an activist investor that owns 1% of Univar’s stock, has been prodding Univar’s management to market the company for sale. However, Engine had been hoping to get a price of between $38 and $44 per share for the firm. “We are confident this transaction is the right path forward,”