New York and London-based private equity firm Clayton, Dubilier & Rice (CD&R) is to buy a stake of 42.5 per cent in chemicals company Univar.

New York and London-based private equity firm Clayton, Dubilier & Rice (CD&R) is to buy a stake of 42.5 per cent in chemicals company Univar.

Univar announced that it had cancelled its plans to float in the US as CD&R agreed to purchase the stake from global investment firm CVC Capital Partners, which retains a 42.5 per cent shareholding in Univar following the transaction.

The deal, which values Univar at $4.2 billion (£2.7 billion), is expected to close in the fourth quarter of this year.

Chris Stadler, managing partner at CVC, states, ‘Over the last several months, there has been significant interest in Univar and its growth prospects from private equity investors.’

Adds Stadler, ‘We focused on those investors which would bring significant industry experience and alignment with CVC.’

Legal advisers for the deal were Sullivan & Cromwell and Kirkland & Ellis, for CVC, and Debevoise & Plimpton, for CD&R.