Apollo has completed its acquisition of Univar Solutions, a distributor of commodity and specialty chemicals, at an enterprise value of $8.1 billion. Co-investing on this transaction with Apollo is the Abu Dhabi Investment Authority.
Univar’s (NYSE: UNVR) products include epoxy resins and polyurethanes; ingredients for cleaners and detergents; additives for lubricants and metalworking fluids; ingredients used in skin and hair care products; commodity and specialty products for food processing, pulp and paper manufacturing; chemistries and products used to treat municipal and industrial water; and chemicals used by midstream pipeline and downstream refinery operators.
Univar also provides transportation and warehousing services, chemicals and hazardous materials handling, waste management services, inventory management, and blending, mixing, and repackaging services. Univar, led by CEO David Jukes, was founded in 1924 and is headquartered near Chicago in Downers Grove, Illinois.
“Over the last three years, we have transformed the company, putting the customer at the center of all we do, which has solidified our position as a leading value-added service and solution provider,” said Mr. Jukes. “This transaction reflects the success of our strategy and delivers substantial value to our shareholders. It is a testament to the tireless efforts of my colleagues, whose commitment to our purpose of helping keep our communities healthy, fed, clean, and safe has enabled our success. 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 and serve our key suppliers and customers globally.”
“We are excited to partner with David and the talented Univar team to build on the company’s strong foundation and track record of innovation, leveraging our extensive industry experience,” said Sam Feinstein, a partner at Apollo. “We have strong conviction in Univar’s potential and look forward to embarking on a number of exciting initiatives to help accelerate the company’s growth.”
For the twelve months ending March 31, 2023, the Adjusted EBITDA for Univar was $942 million. Based on the $8.1 billion enterprise valuation, this equates to an 8.6x valuation multiple.
Goldman Sachs & Co. and Deutsche Bank Securities were the financial advisors to Univar. J.P. Morgan Securities was the lead financial advisor to Apollo with BMO Capital Markets, BNP Paribas Securities, Credit Suisse, Guggenheim Securities, HSBC Securities, Mizuho Securities, RBC Capital Markets and Wells Fargo Securities also advising Apollo.
New York City-headquartered Apollo (NYSE: APO) has more than $598 billion of assets under management and more than $83 billion dedicated to private equity. The firm has acquired more than 350 companies since its founding in 1990.
© 2023 Private Equity Professional | August 4, 2023
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Automotive / EVs, Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- BlockOffsets. Modernizing Environmental Offset Ownership. Access Here.
- Source: https://peprofessional.com/blog/2023/08/03/apollo-closes-buy-of-commodity-and-specialty-chemicals-distributor/
