Private equity group to buy Univar
Chemicals industry M&A activity continues
By Susan Avery -- Purchasing, 7/9/2007 10:21:00 AM
Chemical distribution giant Univar has agreed to be acquired by private equity group Ulysses Luxembourg, a joint venture between CVC Capital Partners and Dutch bank group ING’s equity arm, for more than $2 billion.
With $4.4 billion in annual sales, Univar takes the number-one spot on Purchasing’s Top 100 chemicals distributors list for 2007.
The deal, which amounts to a more than 37% premium over Univar’s July 6 closing price, is expected to close during the third quarter. Ulysses says it plans to take Univar private.
The deal comes only a few months after Univar in April outbid Brenntag for the acquisition of Chemcentral. Univar was originally created in 2002 through a spinoff from Dutch firm Royal Vopak.
Early indications are that market analysts are in favor of the deal. In a Bloomberg story, Andre Mulder, an analyst at Kepler Equities in Amsterdam, called it a “done deal” and said he doesn’t expect any other counteroffers to emerge.
Now Playing: 