Chemical distributor Univar to buy Nexeo for $1.05 billion

Industry:    2018-09-18

Chemical distributor Univar Inc (UNVR.N) will acquire smaller rival Nexeo Solutions Inc (NXEO.O) for about $1.05 billion in a cash-and-stock deal to expand its presence in North America.

The deal announced on Monday consists of $3.29 in cash and 0.305 Univar shares, with an implied value of $11.65 per Nexeo share, which represents a premium of 16.4 percent to the stock’s last closing price.

Nexeo’s shares were up 15 percent at $11.51, while Univar was up marginally at $27.75 in extended trading.

Including debt, the deal was valued at about $2 billion, the companies said.

Univar will evaluate alternatives for Nexeo’s plastics business, including a divestiture. The business accounted for half of Nexeo’s total revenue in 2017.

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