US chemical distributor Univar Solutions Inc. has attracted interest from potential bidders, including Apollo Global Management Inc. and Platinum Equity, according to Bloomberg, citing individuals familiar with the matter. Univar ended talks with Brenntag SE earlier this month (GM Jan. 6, p. 2; Dec. 2, 2022), saying it would continue talks relating to “other indications of interest.”
The private equity firms have been studying the business, according to the sources. The interest is reported to be preliminary and there is no certainty they will proceed with bids, the sources said, adding that Univar has not made a final decision on a sale and could opt to remain independent.
A take-private deal for Univar would incur less antitrust risk than a merger with a peer, and would likely make it easier to restructure.
With one of largest private transportation fleets for chemicals in the world, Univar has a market value of about $5.5 billion. The stock rose 3.3% to $33.60 at 3:07 p.m. in New York trading on Wednesday, Jan. 11.
The company, which is led by CEO David Jukes, merged with rival Nexeo Solutions Inc. in 2019 and then sold its plastics business in that same year.
Representatives for Apollo, Platinum, and Univar declined to comment.