| NEW YORK, June 11
NEW YORK, June 11 Private equity-owned chemical
distributor Univar Inc is poised to select Deutsche Bank Group
AG, Goldman Sachs Group Inc and Bank of
America Corp to lead an initial public offering,
according to people familiar with the matter.
Clayton, Dubilier & Rice LLC (CD&R) and CVC Capital Partners
Ltd have been exploring an IPO of Univar that could value the
largest chemicals distributor in North America at more than $6
billion, Reuters reported in April.
Univar's owners have now decided which investment banks will
lead the IPO and are set to meet more banks in the coming days
to hand out junior underwriting roles and formalize the
mandates, the people said this week.
The sources asked not to be identified because the
discussions are private. CD&R, Goldman Sachs and Bank of America
declined to comment while Univar, CVC and Deutsche Bank did not
respond to requests for comment.
Univar operates a network of 260 distribution facilities
around the world, represents more than 3,500 chemical producers,
and has about 115,000 customers, according to its website.
The Redmond, Washington-based company had revenues of $9.9
billion for the 12 months to the end of June 2013, according to
credit rating agency Moody's Investors Service Inc.
CVC took Univar private in 2007 for $2.1 billion and in 2010
CD&R acquired a 42.5 percent equity interest, leaving CVC with
an equal stake and the remainder owned by management. The deal
in 2010 valued Univar at around $4.2 billion.
In 2012, Univar appointed former water treatment products
company Ecolab Inc president Erik Fyrwald as its chief
Setbacks in certain key markets have impacted Univar's
revenue growth and pressured its profit margins, according to
Moody's. To improve profitability, Univar is focused on cutting
costs, seeking organic growth opportunities and integrating some
of its recent acquisitions, Moody's said last September.
Germany's Brenntag AG, the world's largest
chemicals distributor, posted a 3.3 percent gain in
first-quarter net income last month as an upswing in Europe and
North America offset weaker business in emerging markets.
(Additional reporting by Soyoung Kim in New York; Editing by