Univar plans new debt financing for Nexeo Solutions purchase

By Sara Rosenberg

New York, Sept. 20 – Univar Inc. has received a commitment for $1.3 billion in financing to help fund its acquisition of Nexeo Solutions Inc., according to an 8-K recently filed with the Securities and Exchange Commission.

Under the agreement, Nexeo is being bought in a cash and stock transaction valued at about $2 billion, including the assumption of Nexeo’s debt and other obligations. Nexeo’s stock will be converted into 0.305 shares of Univar common stock and $3.29 in cash, subject to adjustment at closing, representing a purchase price of $11.65 per share of Nexeo common stock.

The company plans to use bank financing and available cash for the cash portion of the acquisition and to refinance Nexeo’s debt.

Closing is anticipated in the first half of 2019, subject to the approval of both Univar and Nexeo shareholders, regulatory approvals and other customary conditions.

The company is expecting pro forma leverage ratio to be below 3 times by the end of the first full year after closing.

Univar is a Downers Grove, Ill.-based distributor of industrial and specialty chemicals. Nexeo is a Houston-based chemicals and plastics distributor.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.