S&P puts Univar on negative watch

S&P said it placed its ratings on Univar Solutions Inc., including its BB+ issuer rating, on CreditWatch with negative implications.

The negative watch follows news that Univar agreed to be acquired by unrated Apollo Global Management for about $8.1 billion in an all-cash deal, S&P said.

“Although we do not yet have all of the details regarding the company's capital structure following the close of the transaction, we regard Apollo as a financial sponsor that is likely to continue to saddle aggressive debt leverage upon its portfolio companies during leveraged buyouts. Univar may carry higher debt following the deal than it had under public ownership,” the agency said in a statement.

S&P said it aims to resolve the CreditWatch, which could lead to a downgrade after the capital structure and financial policies of the new owners become clear, and when the deal closes during the second half of 2023.

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