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Clayton, Dubilier & Rice to Invest in Univar

NEW YORK, NY – Clayton, Dubilier & Rice LLC (CD&R) and CVC Capital Partners have announced a definitive agreement for CD&R to acquire a 42.5-percent ownership interest in Univar, a global distributor of commodity and specialty chemicals to a broad array of end markets. The transaction values the company at approximately $4.2 billion. Funds advised by CVC will retain a 42.5-percent stake in the business. The remaining equity will be held by Univar management and other existing investors.

With revenues of $7.2 billion, Univar operates a network of 179 distribution facilities and distributes more than 11,000 products and 110,000 SKUs to over 80,000 customers in more than 100 countries.

Concurrent with this announcement, Univar has postponed its initial public offering of shares of its common stock and intends to withdraw the registration statement, filed in June 2010, with the U.S. Securities and Exchange Commission for its proposed IPO.

John Zillmer will remain Univar’s President and Chief Executive Officer. CD&R Operating Partner William S. Stavropoulos, former Chairman and Chief Executive Officer of The Dow Chemical Co., will become the non-executive Chairman of Univar.

In recent years, Univar has benefited from the growing shift to third-party distribution in the chemical industry. The trend is driven by a combination of factors including globalization, chemical producers continuing to streamline operations through outsourcing, and the ability of scale distributors, like Univar, to offer customers value-added services and a cost-effective channel to market.

“CD&R is widely respected as a business builder with a deep understanding of our industry and distribution business models,” said Zillmer. “We welcome CD&R’s involvement and CVC’s continued commitment to our growth, success and long-term value creation.”

The transaction is expected to close in the fourth quarter of 2010.
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