CVC Makes $2B Play for Univar

Private equity firm sets sights on US market with purchase of chemical supplier
By J. Kelman,  Newser User
Posted Jul 9, 2007 10:52 AM CDT
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(Newser) – Europe's second-largest private equity fund will purchase Univar, one of the world's biggest chemical distributors, in a deal worth $2.1 billion (€1.52 billion), Bloomberg reports. CVC Capital Partners will pay €53.50 per share, a nearly 40% premium over Friday's closing price, to acquire the largest chemical supplier in North America.

Although Univar is a Dutch company, its US penetration will offer CVC the name recognition it has long sought in American private equity, says the Wall Street Journal. CVC manages nearly $30 billion in private equity wealth but to this point has been largely a European player. Univar's stock jumped more than €14 on the news, rising to €53 in midmorning trading. (Read more private equity stories.)