April 2 2014, David R Brown
Reuters reports world 2nd largest distributor Univar is potentially looking at an IPO
Univar Inc, the largest chemicals distributor in North America, is exploring an initial public offering that could value the private equity-owned company at more than $6 billion, according to a recent report by Reuters. The company is currently majority owned by funds managed by CVC Capital Partners and Clayton, Dubilier & Rice, LLC and had revenues of $9.9 billion for the twelve months ended June 30, 2013.
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Univar Inc. is one of the largest distributors of industrial chemicals supplying customers in 115 countries worldwide with most based in the US, Canada and Europe. The Group currently has a B2 rating from Moody's reflecting it lowish operating margins (that give a minimal cushion in its highly leveraged situation), an underperforming European business and a product mix in the US weighted towards commodity chemicals. However, Univar has a leading position in North America and a large market share in Europe and this coupled with the relatively stable nature of the firm's historical EBITDA generation mean that its floatation is likely to be well received by the IPO market – particularly against the back drop of a resurgent US chemicals sector. Recent acquistions also mean the company has a strong platform for future growth in the raidly growing North American Oil & Gas sector.
According to Chemagility sources other private equity backed distributors could also be looking to an IPO in the next twelve months or so.
About Univar
Univar is one of the world's leading distributors of industrial and specialty chemicals. Univar represents over 3,500 chemical producers to 115,000 customers worldwide. Univar operates a global network of more than 260 facilities in North America, Europe, the Asia-Pacific region, and Latin America, with additional sales offices located in Eastern Europe, the Middle East, and Africa. For the year ending December 2012, Univar reported sales of $9.75Bn.
Source(s): Reuters/Moody
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