First Pacific Advisors Wins Big With Its Nexeo Solutions Inc. (NXEO) Bet

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In our quarterly newsletter we provide the list of high conviction stock picks of value hedge funds. Nexeo Solutions Inc. (NASDAQ:NXEO) is one of the stocks we listed a month ago. Steven Romick’s First Pacific Advisors owns 28.5% of Nexeo Solutions Inc. (NXEO)’s outstanding shares. Another hedge fund that was disproportionately invested in the stock was Park West Asset Management which owned 5.2% of the firm’s outstanding shares.

Nexeo Solutions Inc shares returned 20% over the last month. Most of the gains accrued after Univar Inc. announced its intention to Nexeo Solutionsfor $2 billion ($11.65 a share).  Nexeo was previously bought by a company controlled by Wilbur Ross. Here is what Univar’s CEO said about this week’s deal:

“We expect the transaction to be accretive to earnings and cash flow beginning in the first full year post closing and to generate $100 million of annual run rate cost savings by the third year following close and reduce annual capital expenditures by $15 million immediately,”


The deal is expected to close in the first half of 2019. First Pacific Advisors made about $50 million in profits over the last month.

You can check out the details of FPA’s latest 13D filing below:

Ownership Summary Table

Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
First Pacific Advisors 0 25,618,557 0 25,618,557 25,618,557 28.5%
FPA Crescent Fund, a series of FPA Funds Trust 0 21,605,125 0 21,605,125 21,605,125 24.1%
FPA Global Opportunity Fund, a series of FPA Hawkeye Fund 0 816,923 0 816,923 816,923 0.9%
FPA Select Drawdown Fund 0 1,775,556 0 1,775,556 1,775,556 2.0%
FPA Select Fund 0 148,987 0 148,987 148,987 0.2%
FPA Value Partners Fund, a series of FPA Hawkeye Fund 0 280,167 0 280,167 280,167 0.3%
FPA Select Maple Fund 0 182,067 0 182,067 182,067 0.2%
FPA Select Fund II 0 163,339 0 163,339 163,339 0.2%
J. Richard Atwood 0 25,618,557 0 25,618,557 25,618,557 28.5%
Steven T. Romick 0 25,618,557 0 25,618,557 25,618,557 28.5%
Brian A. Selmo 0 25,618,557 0 25,618,557 25,618,557 28.5%
Mark Landecker 0 25,618,557 0 25,618,557 25,618,557 28.5%

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Page 1 of 19 – SEC Filing








(Amendment No. 3)*




(Name of Issuer)

Common Stock, par value $0.0001 per share

(Title and Class of Securities)


(CUSIP Number)

J. Richard Atwood

First Pacific Advisors, LLC

11601 Wilshire Blvd.

Suite 1200

Los Angeles,
CA 90025

(310) 473-0225

with a copy to:

Douglas A. Rappaport, Esq.

Akin Gump Strauss Hauer & Feld LLP

One Bryant Park

York, NY 10036

(212) 872-1000

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

September 17, 2018

(Date of Event Which Requires Filing of Statement)



If the filing person has
previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), Rule
13d-1(f) or Rule 13d-1(g), check the following box.  ☐

Note. Schedules filed in paper format
shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7(b) for other parties to whom copies are to be sent.


The remainder of this cover page shall be filled out for a reporting persons initial filing on this form
with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be filed for the purpose of Section 18 of the Securities
Exchange Act of 1934 (Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes)


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