Univar buys out Nexeo in Strategic Merger
Univor is a company that distributes chemicals and ingredients, while Nexeo is specialized in plastic production and distribution. In a strategic alignment move, Univor bought out Nexeo’s stock. They plan to keep Nexeo’s operations separate from Univor’s, allowing them to stay under their same management. However the strategy behind the buy out is to use Nexeo’s financial systems and central ERP to complete their digital transformation for reducing costs. Univar’s strengths are e-commerce, however they are still behind in creating a unified real-time IT environment. Therefore this buyout is to accelerate their process by buying a similar company with an already in use ERP system.