Company News

February 8, 2019

Univar Divests Nexeo’s Plastics Business

Univar and Nexeo Solutions Announce Divestiture of Nexeo’s Plastics Distribution Business to One Rock Capital Partners

February 08, 2019 | About: NXEO +0% NXEO +0%
  • Transaction valued at approximately $640 million
  • Transaction expected to close in the first half of 2019; net proceeds will be used to immediately pay down debt
  • Nexeo Plastics is a leading global distributor of a broad range of plastics products, including polymer products and engineering resins, to plastics processors in more than 60 countries worldwide
  • Business will continue to be led by Shawn Williams, executive vice president, Nexeo Plastics

DOWNERS GROVE, Ill. and THE WOODLANDS, Texas, Feb. 08, 2019 (GLOBE NEWSWIRE) — Univar Inc. (: UNVR) (“Univar”) and Nexeo Solutions, Inc. ( NXEO) (“Nexeo Solutions”) today announced an agreement for Nexeo Solutions to divest its plastics distribution business (“Nexeo Plastics”) to an affiliate of One Rock Capital Partners, LLC (“One Rock”) for an enterprise value of $640 million, subject to customary closing adjustments.

Univar’s president and CEO, David Jukes, said: “Today’s announcement marks the conclusion of our strategic review for Nexeo’s Plastics Business and enables us to concentrate our energy on the core chemical distribution business and the abundant value creation opportunities from the Nexeo Solutions and Univar combination.”

Nexeo Solutions’ president and CEO, David Bradley, commented: “For One Rock, the purchase of Nexeo Solutions Plastics represents an opportunity to acquire an industry-leading plastics distributor with strong customer and supplier relationships. As a stand-alone business with a clear strategy, the outlook for the Plastics business and its employees is extraordinary.”

“We are very excited to have One Rock invest in our business, which Nexeo Solutions has built into one of the leading global plastics distribution companies,” said Shawn Williams, executive vice president, for Plastics at Nexeo Solutions. “We look forward to operating as a pure-play plastics business and will focus our talent and resources on expanding our service offering for our suppliers and customers worldwide.”

One Rock Managing Partner Tony Lee commented, “We are excited about the opportunity to create a standalone plastics distribution business and invest in growth by deepening its relationships with customers and supplier partners. We look forward to collaborating with Nexeo Plastics’ management team to achieve the full potential of the business.”

One Rock Managing Partner R. Scott Spielvogel added, “The acquisition of Nexeo Plastics is the culmination of a yearlong evaluation by One Rock during which we utilized our extensive experience in executing corporate carve-outs, together with our knowledge of the plastics, chemicals and distribution industries. We fully expect that we will be able to help management fortify and expand the capabilities of the business, thereby driving value for suppliers and customers alike.”

Transaction Details
The divestiture is expected to result in net cash proceeds of at least $615 million, which will be immediately utilized to pay down debt. Transition services for corporate functions and shared distribution sites will be provided in order to support the buyer and seller during the transition period.

Closing Details
The divestiture has been approved by the Boards of Directors of both Univar and Nexeo Solutions and is anticipated to close in the first half of 2019, subject to receipt of regulatory approvals and satisfaction of other customary conditions and the closing of, or the satisfaction of the conditions to the closing of, Univar’s acquisition of Nexeo Solutions.

Advisors
For Univar, Goldman Sachs & Co. LLC is serving as financial advisor, and Wachtell, Lipton, Rosen & Katz is serving as legal counsel. For Nexeo Solutions, Moelis & Company LLC is serving as financial advisor, and Weil, Gotshal & Manges LLP is serving as legal counsel. For One Rock, Jefferies LLC is serving as financial advisor, and Latham & Watkins LLP and Hogan Lovells US LLP are serving as legal counsel.

https://www.gurufocus.com/news/812665/univar-and-nexeo-solutions-announce-divestiture-of-nexeos-plastics-distribution-business-to-one-rock-capital-partners

February 6, 2019

PU Recycling Initiative

Covestro is involved in a new Europe-wide research project

Improving the recycling of polyurethane plastics

Complete circular product life cycle as target / Funding by the European Union
more imagesdownload
PUReSmart Logo

Together with partners, Covestro is investigating how recycling polyurethane plastics can be significantly improved. The materials manufacturer is part of the new Europe-wide research project called “PUReSmart”, which comprises nine companies and academic institutions from six countries. The goal is to develop a complete circular product life cycle and turn polyurethane into a truly sustainable material. One of the materials made of polyurethane is soft and hard foam, which is required for mattresses and upholstered furniture as well as for insulating buildings and cooling devices.

PUReSmart will run for four years and will receive six million euros from the European Union under the Horizon 2020 research and innovation program (grant agreement No. 814543). The project, coordinated by the Belgian company Recticel, aims to recover 90 percent of the used polyurethane in order to create building blocks for existing or new products – for example a new polymer that combines the durability of thermosets with the recyclability of thermoplastics. Intelligent sorting methods are particularly important for efficient chemical recycling.

Obtaining new high-quality raw materials

Covestro is working on the best possible chemical recycling of polyurethanes after use during the project along with the qualitative treatment of the material flows that are generated during this. The aim is to obtain high-quality raw materials for new polyurethane applications. “Polyurethanes are a particularly versatile and widely used class of plastics that provide comfort and safety in many applications worldwide and, as an insulating material, contribute to energy savings and thus to sustainability,” says Dr. Nikola Schuck, who heads Covestro’s contributions to PUReSmart. “Now it’s time to increase the sustainable value of the material at the end of its useful life.”

In addition to Covestro and Recticel, the companies BT-Wolfgang Binder (Austria), WeylChem InnoTec (Germany), Ecoinnovazione SRL (Italy) and Ayming (France) are involved in the PUReSmart consortium, which stands for a seamless and complete value-added chain in polyurethane reprocessing. Other academic partners are the University of Ghent (Belgium), KU Leuven (Belgium) and the Universidad de Castilla – La Mancha (Spain).

https://press.covestro.com/news.nsf/id/improving-the-recycling-of-polyurethane-plastics

February 6, 2019

PU Recycling Initiative

Covestro is involved in a new Europe-wide research project

Improving the recycling of polyurethane plastics

Complete circular product life cycle as target / Funding by the European Union
more imagesdownload
PUReSmart Logo

Together with partners, Covestro is investigating how recycling polyurethane plastics can be significantly improved. The materials manufacturer is part of the new Europe-wide research project called “PUReSmart”, which comprises nine companies and academic institutions from six countries. The goal is to develop a complete circular product life cycle and turn polyurethane into a truly sustainable material. One of the materials made of polyurethane is soft and hard foam, which is required for mattresses and upholstered furniture as well as for insulating buildings and cooling devices.

PUReSmart will run for four years and will receive six million euros from the European Union under the Horizon 2020 research and innovation program (grant agreement No. 814543). The project, coordinated by the Belgian company Recticel, aims to recover 90 percent of the used polyurethane in order to create building blocks for existing or new products – for example a new polymer that combines the durability of thermosets with the recyclability of thermoplastics. Intelligent sorting methods are particularly important for efficient chemical recycling.

Obtaining new high-quality raw materials

Covestro is working on the best possible chemical recycling of polyurethanes after use during the project along with the qualitative treatment of the material flows that are generated during this. The aim is to obtain high-quality raw materials for new polyurethane applications. “Polyurethanes are a particularly versatile and widely used class of plastics that provide comfort and safety in many applications worldwide and, as an insulating material, contribute to energy savings and thus to sustainability,” says Dr. Nikola Schuck, who heads Covestro’s contributions to PUReSmart. “Now it’s time to increase the sustainable value of the material at the end of its useful life.”

In addition to Covestro and Recticel, the companies BT-Wolfgang Binder (Austria), WeylChem InnoTec (Germany), Ecoinnovazione SRL (Italy) and Ayming (France) are involved in the PUReSmart consortium, which stands for a seamless and complete value-added chain in polyurethane reprocessing. Other academic partners are the University of Ghent (Belgium), KU Leuven (Belgium) and the Universidad de Castilla – La Mancha (Spain).

https://press.covestro.com/news.nsf/id/improving-the-recycling-of-polyurethane-plastics

February 5, 2019

HollyFrontier Acquires Sonneborn

 

We are pleased to announce the acquisition of Sonneborn by HollyFrontier Corporation was
completed on February 1, 2019.

With this addition to our organization, HollyFrontier becomes a leading global supplier of
specialty products. Sonneborn’s strong brand recognition and diversified portfolio of products
complements HollyFrontier’s existing lubricants and specialty products business. Sonneborn
will operate within the HollyFrontier Lubricants and Specialty Products (HFLSP) umbrella
along with Petro-Canada Lubricants and Red Giant Oil.

We look forward to strengthening our global footprint through processing and blending
capabilities in North America and Europe and expanding our technical expertise.
HFLSP and its subsidiaries will continue to remain focused on providing quality products and
service to our customers, while maintaining safe and reliable operations.

If you have any questions, please reach out to your account representative.

February 5, 2019

HollyFrontier Acquires Sonneborn

 

We are pleased to announce the acquisition of Sonneborn by HollyFrontier Corporation was
completed on February 1, 2019.

With this addition to our organization, HollyFrontier becomes a leading global supplier of
specialty products. Sonneborn’s strong brand recognition and diversified portfolio of products
complements HollyFrontier’s existing lubricants and specialty products business. Sonneborn
will operate within the HollyFrontier Lubricants and Specialty Products (HFLSP) umbrella
along with Petro-Canada Lubricants and Red Giant Oil.

We look forward to strengthening our global footprint through processing and blending
capabilities in North America and Europe and expanding our technical expertise.
HFLSP and its subsidiaries will continue to remain focused on providing quality products and
service to our customers, while maintaining safe and reliable operations.

If you have any questions, please reach out to your account representative.