More on Univar IPO
Downers Grove chemical distributor could raise up to $440 million in IPO
Downers Grove-based Univar, one of the biggest chemical distributors in the world, plans to raise up to $440 million in an initial public offering.
The company said in an IPO prospectus filed today with the Securities and Exchange Commission that it plans to sell 20 million shares on the New York Stock Exchange at an estimated price of $20 to $22 per share, thus bringing in between $400 million and $440 million.
The proceeds will be used to acquire or retire $650 million in debt, pay various expenses and for general corporate purposes, Univar said in a statement. The firm first filed for an IPO a year ago, seeking then to raise $100 million, according to Reuters.
Led by CEO Erik Fyrwald, Univar completed a move from Redmond, Wash., to headquarters in Downers Grove last June, according to spokesman Scott Johnson. It employs more than 100 people in the office and operates a variety of warehouse and other facilities around the region.
Univar sources chemicals from more than 8,000 producers around the world, including Dow Chemical, ExxonMobil and BASF, according to the prospectus. It sells the products to more than 110,00 customers around the world, from Valero Energy to Kellogg. The energy and mining sector, agriculture and food ingredients are key end markets.
Last year, Univar reported a net loss of $20.1 million on $10.4 billion in net sales, the prospectus says. The company is owned by private-equity firms Clayton, Dubilier & Rice and CVC Capital Partners.
Johnson, the firm's spokesman, declined to comment on the offering, citing the pre-IPO quiet period.
But he said Univar wanted to move to the Chicago area because of its proximity to suppliers in the Gulf Coast, Michigan and other locations in the central part of the U.S.
The state of Illinois provided a $1.5 million grant to the firm to help it relocate here, according to the Illinois Department of Commerce and Economic Opportunity.