CVC will Buy Univar

Private equity firm CVC Capital Partners has agreed to buy Dutch chemical distributor Univar for $2.1 billion. CVC will pay $73.83 per share for Univar, 37% higher than the firm's stock price before the deal was announced on July 9. CVC says it supports Univar's strategy to expand its distribution business organically and through selective acquisitions, particularly in Europe and Asia. Univar already holds a leading distribution position in the U.S. Earlier this year Univar purchased a U.S. distributor, ChemCentral, for $650 million, beating out German rival Brenntag. Univar now operates more than 200 distribution centers globally, has annual sales of about $8 billion, and employs 8,000 people. HAL Holding, a Dutch investment company that owns 27% of Univar, has agreed to tender its shares to CVC. Rumors that Brenntag, controlled by European private equity firm BC Partners, may make a competing bid sent Univar's shares higher to close at $75.22 last Tuesday. But under its agreement with CVC, HAL can't sell its shares to another bidder unless the offer is $5.20-per-share higher than CVC's.