HOUSTON (ICIS)--Univar has agreed to acquire Nexeo in an approximate $2bn cash and stock transaction, the US-based chemical and plastics distributors announced on Monday.
The $2bn deal includes Nexeo's debt and other obligations and is expected to close in the first half of 2019, subject to shareholder and regulatory approvals.
Univar said it expects synergies of $100m in cost savings by the third year following the close of the deal. Capital expenditures (capex) will be reduced by $15m/year immediately, the company added.
Univar also said it has hired an external advisor in regards to Nexeo's plastics business, which the company said may be divested.
The transaction was unanimously approved by the boards of directors from both companies.