"We are pleased to have reached this agreement with Apollo, which will provide immediate and certain cash value for Univar Solutions shareholders," said Univar chairman Chris Pappas. "The board's decision follows a comprehensive review of value creation opportunities for Univar Solutions. We are confident this transaction is the right path forward and achieves our goal of maximizing value for Univar Solutions shareholders."

Apollo partner Sam Feinstein added that Univar can accelerate its long-term strategy as one of its portfolio companies.

The transaction is expected to close in the second half of 2023, subject to customary conditions and including approval by Univar Solutions shareholders. Once the deal is finalized, Univar will become a private company and no longer trade on the New York Stock Exchange. It will, however, continue to operate under the Univar Solutions name and brand.

Activist investor Engine Capital has been urging Univar to consider a sale or other options, saying the distributor was deeply undervalued and had been unable to generate adequate returns for investors. Late last year, the US distributor and German distribution giant Brenntag started preliminary talks but the companies announced in January that these had ended.

Author: Elaine Burridge, Freelance Journalist