Onex Corporation

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Onex Corporation
Public
Traded asTSXONEX
IndustryPrivate Equity
Founded1984; 34 years ago (1984)
FounderGerry Schwartz
HeadquartersToronto, Ontario, Canada
Key people
Gerry Schwartz (CEO/Chairman)
ProductsPrivate equity funds, Leveraged buyouts
AUM$32 billion
Websitewww.onex.com

Onex Corporation is a private equity, credit investor and manager founded in 1984. As of March 31, 2018, the firm has more than $32 billion of assets under management.

Its private equity investments are made through its Onex Partners and Onex family of funds. Its credit platform has grown since first being established in 2007, mainly driven by its collateralized loan obligations ("CLOs").

Onex ensures a strong alignment of interests between its shareholders, limited partners and management team. Onex is the largest limited partner in each private equity fund and is a meaningful investor in its credit platform. The Onex management team is required to invest in Onex shares and in each operating business acquired.

History[edit]

Gerry Schwartz had previously worked at Bear Stearns under the investor Jerome Kohlberg, Jr.[1] Kohlberg left in 1976, where he was soon joined by Henry Kravis and George Roberts, and they founded Kohlberg Kravis Roberts.[1] Schwartz returned to Canada, where he started working with Izzy Asper.[1] Schwartz later founded Onex on his own in 1984.[1]

In 1987, Onex completed an initial public offering of its shares and the Firm today invests capital on behalf of Onex and from fund investors around the world.

Since its founding, the firm has generated a gross internal rate of return of 28% on its realized private equity investments (as of March 31, 2018).[1]

Investments[edit]

The firm invests in a wide array of industries including consumer & retail, financial services, healthcare, industrials, services and technology, media & telecom. The firm prefers to have majority control over its subsidiaries.

In the 1980s it played this role in the auto parts industry. In 1996 it bought IBM's manufacturing division Celestica.

It has invested in the movie theatre business, both in Canada with Cineplex Entertainment.

The firm has long been invested in the airline industry, and is known for its 1999 attempt to buy and merge Air Canada and Canadian Airlines, which did not happen. In 2004 Onex bought Boeing Commercial Airplanes' Kansas and Oklahoma manufacturing facilities, forming Spirit AeroSystems, which was later partially floated in late 2006. In January 2007, Onex signed a deal to acquire the Raytheon Aircraft Company from Raytheon (forming Hawker Beechcraft).[citation needed]

In January 2007, Onex signed a deal to acquire Eastman Kodak's medical imaging unit, including a Kodak factory in White City, Oregon. The company formed is now known as Carestream Health.

On June 28, 2007, Onex announced that it would partner with The Carlyle Group to buy the Allison Transmission unit of General Motors for $5.6 billion.[2]

On December 3, 2012, Onex took a 50% stake in aircraft lessor BBAM and invested $75 million in aircraft leasing firm FLY Leasing.[3]

In May 2013, Nielsen Holdings announced it would sell its expositions business to Onex Corporation for $950 million.[4]

In November 2014, Onex agreed to buy cartons giant SIG Combibloc Group from the Rank Group in a deal reported to be worth $4.6bn.[5]

In July 2016, Onex and Baring Asia agreed to buy the Intellectual Property & Science business unit from Thomson Reuters for $3.55 billion.[6]

In October 2016, Onex agreed to buy Save-A-Lot from SuperValu.[7]

In December 2017, Onex announced to buy venue operator SMG.

Other companies in which Onex owns or has owned include Sitel, American Medical Response, EmCare, Jeld-Wen, Husky Injection Molding Systems, Canadian Securities Institute, Cici's, Sky Chefs, WIS International, The Warranty Group, Caliber Collision Centers, Tomkins, USI Insurance Services, Mavis Discount Tire, Hopkins Manufacturing, Bradshaw Home and Tecta America.

Office[edit]

Onex is headquartered on the 49th floor of Brookfield Place in Toronto, with branch offices in New York City, New Jersey, and London.[citation needed]

References[edit]

  1. ^ a b c d e "Canada's very own private-equity giant Onex quietly tops returns of big-name U.S. rivals". Financial Post. Retrieved 2015-11-24.
  2. ^ Reuters/Yahoo! News: "GM selling Allison for $5.6 billion," 2007-06-28
  3. ^ ONEX. ONEX. Retrieved on 2013-09-19.
  4. ^ Bhaswati Mukhopadhyay (6 May 2013). "Nielsen to sell expositions business to Canadian PE firm for $950 million". Reuters.
  5. ^ "Private Equity firm Onex has agreed to acquire cartons giant SIG Combibloc Group in a reported $4.6bn deal". Packaging News. Retrieved 2014-11-24.
  6. ^ "Thomson Reuters to sell IP & Science unit to Onex, Baring Asia for $3.55 bln". Reuters. Retrieved 2016-07-11.
  7. ^ "Supervalu to Sell Save-A-Lot Chain to Onex for $1.37 Billion".

External links[edit]