Univar, North America's leading chemicals distributor backed by CVC and CD&R, added insider selling ahead of its upcoming IPO on Wednesday. The Downers Grove, IL-based company now plans to raise $735 million by offering 35 million shares (43% insider) at a price range of $20 to $22, which increases the deal size by 75% from the $420 million (20 million primary shares; $20-$22 range) originally planned.
Most of the insider shares are coming from CVC; CD&R is not selling and will therefore become the company’s largest shareholder. Insiders will retain the option to sell up to $150 million to Temasek, which is also investing $350 million in primary capital, in a concurrent private placement at the lesser of the offer price and $21.
Univar will not receive any additional proceeds from the revised terms and its proposed valuation remains unchanged. At the midpoint, it continues to command a fully diluted market cap of $2.9 billion and enterprise value of $5.8 billion.
Univar, which was founded in 1924 and booked $10.2 billion in sales for the 12 months ended March 31, 2015, plans to list on the NYSE under the symbol UNVR. Deutsche Bank, Goldman Sachs, BofA Merrill Lynch, Barclays, Credit Suisse, J.P. Morgan, Jefferies & Co. and Morgan Stanley are the joint bookrunners on the deal.
