Nexeo Solutions acquired by billionaire investor

Composites materials distributor Nexeo Solutions is being acquired by WL Ross Holding Corp.


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Nexeo Solutions (The Woodlands, TX, US), a worldwide leader in chemical and plastics distribution, today announced that is has entered into a merger agreement with WL Ross Holding Corp., a special purpose acquisition company sponsored by WL Ross Sponsor LLC.

As part of the transaction, valued at $1,575 million, Nexeo Solutions will become a wholly-owned subsidiary of WL Ross Holding Corp. Immediately following the Merger, WL Ross Holding Corp. intends to change its name to Nexeo Solutions Inc. and will apply to continue to trade on The NASDAQ Capital Market under the ticker symbols NXEO, NXEOU, and NXEOW. Global alternative asset firm TPG, the current majority owner of Nexeo, expects to retain an approximately 35% stake in the new company.

Nexeo Solutions highlihgts:

  • Largest global chemical and plastics distributor, with a centralized business model.
  • 1 position in U.S. plastics distribution.
  • 23,000+ products used in a broad cross-section of industries, including chemicals manufacturing, energy, paints and coatings, automotive, healthcare and personal care.
  • 27,000+ customers and 1,300+ suppliers worldwide.
  • $3.9 billion FY 2015 revenues.
  • Approximately 170 locations, and a private fleet of over 1,000 units.

“This transaction allows us to align our ownership structure in a way that accelerates our progress towards defining distribution,” atA David Bradley, president and CEO of Nexeo Solutions. “With a strong, centralized operating platform and access to multiple sources of capital, I believe we will be positioned to grow organically and through acquisition.”

“We are pleased to partner with TPG to introduce Nexeo Solutions as a publicly listed company,” says Wilbur L. Ross, Jr., chairman of WLRH. “Over the last two years, we have evaluated a number of potential acquisitions for WLRH and we believe this opportunity offers a superior option for our shareholders. Nexeo Solutions presents a unique opportunity to invest in an industry-leading company supported by strong business fundamentals and long-term structural growth trends. Additionally, we believe the Company is an ideal platform to further roll up the fragmented chemicals and plastics distribution space, creating significant value for shareholders. We look forward to our partnership with the Nexeo Solutions management team as we work with them to further capitalize on these attractive growth prospects.”

“It has been our privilege to work with Nexeo management since our acquisition of the business from Ashland in 2011 to build a world-class distribution platform poised for further growth,” says Christopher Yip of TPG. “We look forward to remaining a significant owner of the says and a value-added partner to the company as it enters this new phase of growth.”

“Today is an exciting day for Nexeo as we start our transition to a public company and enter our next phase of growth,” says former Nexeo Chairman Dan Smith, who will remain on the Nexeo board. “Working together with TPG, the Nexeo executive team has made significant progress in further strengthening the company. We look forward to working with our new partners at WL Ross and to continuing to work with TPG to grow this great business.”

The Nexeo Solutions management team, headed by David Bradley, is expected to continue to lead Nexeo Solutions Inc., following the consummation of the Merger. Wilbur L. Ross, Jr. will serve as Chairman of the Board.