Onex Corporation
TSX : OCX

Onex Corporation

February 01, 2007 18:22 ET

ONCAP Agrees to Sale of CMC Electronics

TORONTO, ONTARIO--(CCNMatthews - Feb. 1, 2007) -

All amounts in Canadian dollars unless otherwise stated

Onex Corporation (TSX:OCX) and ONCAP, Onex' mid-cap private equity group, announced today that ONCAP has agreed to sell CMC Electronics Inc., a leading aerospace and defense avionics company, to Esterline Corporation (NYSE: ESL) in a transaction valued at approximately $392 million. CMC Electronics was acquired by ONCAP and related co-investors in 2001.

"We have worked closely with the CMC Electronics management team for more than five years to grow and improve the company's business and to take advantage of exciting new opportunities," said Gregory Baylin, Partner of ONCAP. "The sale to Esterline will enable CMC to continue to develop and manufacture industry-leading products, provide outstanding service to their customers and keep a highly skilled and motivated team together."

"This transaction is a direct result of the very successful partnership between ONCAP and the CMC management team," added Michael Lay, Managing Partner of ONCAP. "It is particularly satisfying to be concluding our first fund with such a positive transaction."

It is anticipated that on closing, ONCAP and its co-investors will receive approximately $340 million with Onex receiving approximately $140 million of those proceeds. The transaction, which is subject to customary regulatory approvals and is expected to close in the second quarter of 2007, will bring total proceeds to ONCAP and its co-investors to $650 million, of which $266 million will have been received by Onex.

ONCAP is the mid-cap private investing equity arm of Onex. It currently manages ONCAP II LP, a fund with $575 million of capital commitments.

Onex manages third party private equity investments through the Onex Partners and ONCAP family of funds. It also manages a real estate fund and a public market fund. Through these activities Onex generates annual management fee income and is entitled to a carried interest on approximately $3.5 billion of third party capital.

Onex is a diversified company with annual consolidated revenues of approximately $20 billion and consolidated assets of approximately $20 billion. Onex is one of Canada's largest companies with global operations in service, manufacturing and technology industries. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX.

For more information on Onex, visit its website at www.onex.com.

Onex' security filings can be accessed at www.sedar.com.

Contact Information

  • ONCAP
    Michael Lay
    (416) 214-4300
    or
    ONCAP
    Gregory Baylin
    (416) 214-4300
    Website: www.onex.com