WSJ: Wilbur Ross To Buy Nexeo Solutions From TPG For About $1.6 Bln

(RTTNews) - A blank-check company run by billionaire investor Wilbur Ross has reached a deal to acquire Nexeo Solutions Holdings LLC, for about $1.6 billion, including debt, the Wall Street Journal reported Sunday, citing people familiar with the matter.

Woodlands, Texas-based Nexeo is a distributor of plastic resins and chemicals. According to the WSJ report, a deal is expected to be announced Monday morning. Ross will buy the company through WL Ross Holding Corp. (WLRH), a blank-check company launched in 2014.

A blank-check company is also referred to as a special purpose acquisition company or SPAC. Such companies have no operations, but are formed for the purpose of entering into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses or entities.

Nexeo is currently owned by private equity firm TPG, which acquired the company for nearly $1 billion from specialty chemicals producer Ashland Inc. (ASH) in 2011. Nexeo has more than 2,400 employees and operations across North America, Europe and Asia.

Nexeo offers more than 26,000 products that are used in a broad cross-section of industries, including chemicals manufacturing, oil and gas, paints and coatings, automotive and healthcare. The company generated nearly $4 billion in sales for the fiscal year ended September 2015.