Univar features as activist pushes for strategic overview amid talks with Brenntag (NYSE:UNVR)

A Univar Options (NYSE:UNVR) activist investor mentioned the chemical distributor ought to announce a proper gross sales course of after Brenntag (OTCPK:BNTGF) confirmed it was in takeover talks on Friday. Univar ticked down 1%.

Activist Engine Capital, which has a ~1% stake in Univar, mentioned the firm ought to begin a aggressive gross sales course of that invitations further events to bid for Univar (UNVR), based on a letter Engine despatched to Univar’s board on Wednesday.

“Whereas we acknowledge the economic logic of a mixture between Univar and Brenntag, and imagine the synergies could be materials, we additionally observe that non-public fairness has been actively concerned within the house, together with by previous possession of each Univar and Brenntag,” Engine Capital Managing Accomplice Arnaud Ajdler and Accomplice Brad Favreau wrote in a letter to Univar’s board on Wednesday.

Engine Capital highlighted a letter it despatched to Univar’s board in October and estimated that Univar (UNVR) could also be value $38-$44/share in a takeover primarily based on precedent transactions that time to a a number of of 9x and 10x 2023 adj. EBITDA.

On Monday a Credit score Suisse analyst mentioned Univar (UNVR) may even see ~$40/share in a possible takeover by Brenntag (OTCPK:BNTGF) after a report Friday that the businesses had been in talks. Brenntag might pay 9x+ 2023e valuation for UNVR, Credit score Suisse analyst John Roberts wrote in a observe on Sunday.