After exploring the potential of a sale or IPO for Nexeo Solutions Holdings back in November, TPG Capital Management has clearly decided in favour of the former, as WL Ross Holdings Corp has announced that it is set to buy the chemicals and plastics distributor for US$1.67 billion, according to a report published by Reuters.
WL Ross Holdings will pay US$1.3 billion in cash and debt and transfer up to 35 million shares of WL Ross common stock to TPG in consideration for Nexeo. TPG, who bought Nexeo from Ashland in 2011 for US$1 billion, will retain a 35 percent stake in the chemicals distributor and will continue to be represented at board level, WL Ross Founder Wilbur Ross will serve as Chairman.
WL Ross will be renamed Nexeo Solutions when the deal is finalized towards the end of the year. In a statement, Ross noted that Nexeo is ‘an ideal platform to further roll up the fragmented chemicals and plastics distribution space’.