UPDATE 2-WL Ross to buy chemicals distributor Nexeo from TPG
* Deal for $1.3 bln in cash and debt; up to 35 mln WL Ross shares
* TPG to retain about 35 pct stake in Nexeo
* WL Ross to change name to Nexeo Solutions Inc (Adds details, background)
March 21 (Reuters) - WL Ross Holdings Corp said on Monday it would buy chemicals and plastics distributor Nexeo Solutions Holdings LLC from private equity firm TPG in a deal valued at $1.67 billion.
TPG, which purchased Nexeo for nearly $1 billion from U.S. specialty-chemicals producer Ashland Inc in 2011, will retain about 35 percent stake in the company and will continue to have representation on the board.
Texas-based Nexeo supplies raw materials used in a number of industries including chemical manufacturing, oil and gas and healthcare.
WL Ross - a blank-check company formed by billionaire investor Wilbur Ross for acquisitions - will be renamed Nexeo Solutions Inc when the deal closes, expected in the second quarter.
Nexeo is "an ideal platform to further roll up the fragmented chemicals and plastics distribution space," Wilbur Ross said in a statement.
There have been a spate of deals in the North American chemical industry in the past few years, topped by the $130-billion merger between chemical titans DuPont and Dow Chemical Co. Continued...