Univar to buy Wilbur Ross’s Nexeo for $2 billion
Univar Inc. UNVR, +0.99% said Monday that it planned to acquire Nexeo Solutions Inc. NXEO, -0.30% for $2 billion in cash and stock, valuing the company at $11.65 a share. Nexeo shares closed at $10.01, and were halted early in the after-hours session ahead of the announcement. Nexeo, which distributes chemicals and plastics, was previously acquired for about $1.6 billion in 2016 by a company run by Wilbur Ross, who has since become the U.S. secretary of commerce. Under the terms of the deal, "We expect the transaction to be accretive to earnings and cash flow beginning in the first full year post closing and to generate $100 million of annual run rate cost savings by the third year following close and reduce annual capital expenditures by $15 million immediately," Univar Chief Executive David Jukes said in the announcement. Univar plans to pay 0.305 shares of Univar common stock and $3.29 in cash for each Nexeo share, and assume debt. The deal has been approved by the boards of both companies, and they expect it to close in the first half of 2019. Univar shares gained about 1% in late trading after detailing the deal.
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