News Article 2015

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November 2 2015, David R Brown

TPG reportedly exploring sale or IPO for leading chemical distributor Nexeo Solutions

Reuters has reported that private equity investment company TPG Capital Management LP is exploring a sale or initial public offering of Nexeo Solutions LLC, hoping a deal would value the U.S. chemical distribution company at close to USD 2 billion, including debt, according to people familiar with the matter. Nexeo posted an adjusted annual earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately USD 165 million for fiscal year ending 2014.

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TPG is believed to be interviewing investment banks to appoint financial advisers that will help determine whether it will make more money selling Nexeo outright as opposed to taking it public and then selling down shares. Univar Inc (UNVR.N), a Nexeo competitor based in Downers Grove, Illinois, went public earlier this year.

Nexeo has not immediately responded to a request for comment, while TPG declined to comment.

Chemicals producer Ashland Inc (ASH.N) sold its distribution business to TPG in 2010 for $979 million (€695M) as part of an effort to shift focus to higher-margin specialty chemicals. TPG renamed the business Nexeo Solutions, and it began operations as an independent distributor of chemicals, plastics and composite materials in the United States, Europe and China. Its chemicals are used in a wide range of industries including personal care, oil and gas exploration and production and aircraft de-icing.

About Nexeo Solutions
Nexeo Solutions LLC is a US headquartered global distributor of chemicals products in North America and Asia and plastics products in North America, Europe, the Middle East and Africa and Asia. The Company was also a distributor of composites products in North America until July 1, 2014, when these operations were sold to Composites One. For the full year ending 30th September 2014 Nexeo Solutions achieved sales revenues in excess of $4.5Bn and employed more than 2,600 employees globally.www.nexeosolutions.com

Source(s): Reuters Article

Further Information

Visit: http://www.reuters.com