Equity firm CD&R buys 42.5% stake in Univar; IPO plan cancelled

02 September 2010 15:43  [Source: ICIS news]

TORONTO (ICIS)--Private equity firm Clayton, Dubilier & Rice (CD&R) has agreed to acquire a 42.5% ownership interest in chemical distribution major Univar from CVC Capital Partners (CVC), the companies said on Thursday.

At the same time, Univar would withdraw a registration statement for an initial public offering it filed with the US Securities and Exchange Commission in June, they said.

The transaction with CD&R came after a number of private equity investors had shown “significant interest” in Univar in past months, CVC said.

Under the deal, which valued Univar at $4.2bn (€3.3bn), CVC would retain a 42.5%, with the remaining interest held by Univar’s management and other investors, they said. The deal was expected to close in the fourth quarter, they added.

CVC managing director Gijs Vuursteen, said: “Our new partners at CD&R have a deep understanding of the sector and are very well placed to help us in our continued efforts to support the growth of the company and the management team’s strategic and operational initiatives.”

Univar chief executive officer and president John Zillmer would continue to head the company. At the same time, former Dow Chemical chief executive William Stavropoulos, would become non-executive chairman of Univar, the companies said.

Univar had annual revenues of about $7.2bn and operated 179 distribution facilities, serving 80,000 customers in more than 100 countries, they said. The company held the number 1 market position in the US and Canada and was number 2 in Europe, they said.

Earlier this year, Univar rival Brenntag went ahead with an IPO.

($1 = €0.78)

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