A further 42.5 per cent will remain in the ownership of private equity firm CVC Capital Partners and the remaining 15 per cent will be held by Univar management and other existing investors.
As a result the company will be postponing its initial public offering.
Univar supplies speciality chemicals to a range of industries including the personal care and cosmetics sector, and for the purposes of the investment the company was valued at approximately $4.2bn.
CD&R experienced in the sector
According to CVC Capital Partners interest in the company was widespread and CD&R was chosen due to its significant experience.
“We focused on those investors which would bring significant industry experience and alignment with CVC in the partnership approach with management,” managing partner of CVC Capital Partners Chris Stadler said.
According to CD&R, which has already invested in a number of distribution businesses operating in various industries, Univar was a perfect fit for its investment plans.
“Univar’s business profile fits our investment focus perfectly, and we look forward to working with CVC and the Univar management team to continue to build the business,” said CD&R partners David H. Wasserman.
Wasserman also said that the company was a leader in a market with favourable trends and a broad spread of risk.
Management at the company will not change signficantly as John Zillmer will remain Univar’s president and CEO.
However, CD&R operating partner William S. Stavropoulos will become the non-executive of chairman of Univar. Stavropoulos, is also the former chairman and CEO of the Dow Chemical Company.