UNIVAR
USD 2 bn takeover of US distributor Nexeo / Potential divestment of plastics business
Univar's president and CEO David Jukes will remain in the same position at the combined company (Photo: Univar)
US chemicals distributor Univar (Downers Grove, Illinois; www.univar.com) is to acquire plastic resins distributor Nexeo Solutions (The Woodlands, Texas / USA; www.nexeosolutions.com) in a transaction valued at approximately USD 2 bn. This includes Nexeo’s USD 949m of net debt and other obligations.

About the combined company, Univar president and CEO David Jukes said, "We expect the transaction to be accretive to earnings and cash flow beginning in the first full year post closing and to generate USD 100m of annual run rate cost savings by the third year following close and reduce annual capital expenditures by USD 15m immediately." Jukes will lead the new company as president and CEO. Combined annual revenues are expected to be USD 12.5 bn and EBITDA around USD 843m.

Univar has hired an external advisor to evaluate strategic alternatives, including a potential divestment of Nexeo's plastics business. The segment will continue to be led by Shawn Williams, executive VP Nexeo Plastics. In fiscal 2017, revenues from the plastics business were USD 1.8 bn and gross profit was USD 167m. Around 64% of revenues were in North America, while the EMEA region made up about 26%, with the rest belonging to Asia. According to Nexeo, its key plastics are polyolefins, styrenics and engineering plastics.

Nexeo has more than 2,600 employees and annual revenues of almost USD 4 bn. In 2016, the company was acquired by WL Ross Holding (New York / USA; www.wlross.com) for about USD 1.6 bn – see Plasteurope.com of 22.03.2016. At the time, the New York-based company was run by Wilbur Ross, who is the current US secretary of commerce.

The transaction has been unanimously approved by both companies' boards of directors, and is anticipated to close in H1 2019. It is still subject to the approval of Univar and Nexeo shareholders and regulatory approvals.
19.09.2018 Plasteurope.com 1011 [240704-0]
Published on 19.09.2018
Univar: Chemiedistributeur übernimmt Konkurrent NexeoGerman version of this article...

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