Chemical distributor Univar buying competitor Nexeo Solutions for $2 billion
But Univar also said that it has hired an external advisor “to evaluate strategic alternatives for Nexeo’s industry-leading plastics business, which may include a potential divestiture of the business.”
Chemical distributor Univar Inc. will acquire smaller competitor Nexeo Solutions Inc. for approximately US$2 billion in a deal designed to expand its presence in North America – but how long Univar may retain Nexeo is open to question.
“Together, we will drive growth and shareholder value with the largest North American sales force in chemical and ingredients distribution, the broadest product offering, and most efficient supply chain network in the industry,” Univar CEO David Jukes said in a statement.
Univar is headquartered in Downers Grove, Ill., and Nexeo is based in The Woodlands, Texas.
Univar is a global distributor of chemicals and ingredients and a provider of value-added services; Nexeo distributes resin and specialty chemicals.
Nexeo CEO David Bradley added that his firm “shares Univar’s confidence in the future of our combined enterprise, given the strong strategic alignment across our business models, go-to-market strategies, superior product offerings, and digital capabilities.”
“We are especially pleased that Nexeo’s employees are highly valued by Univar, and that our shareholders will be able to participate in the company’s future success through ongoing equity ownership,” Bradley added.
But there are signs that Nexeo may not be part of Univar for very long. In its statement, Univar also said that it has hired an external advisor “to evaluate strategic alternatives for Nexeo’s industry-leading plastics business, which may include a potential divestiture of the business.”