Onex Corporation
TSX : OCX

Onex Corporation

June 01, 2006 08:00 ET

ONCAP Closes Second Fund At $575 Million

TORONTO, ONTARIO--(CCNMatthews - June 1, 2006) -

All amounts in Canadian dollars unless otherwise stated

Onex Corporation (TSX:OCX) announced today the final closing of its second small and mid-cap private equity fund, ONCAP II, with approximately $575 million of committed capital. Onex represents 50% of the fund's total capital, with the balance having been committed by US and Canadian institutions, the ONCAP management team and high net worth investors. Onex also controls the general partner of ONCAP II.

ONCAP II will seek to acquire and build value in small and medium-sized businesses based in North America and will principally target opportunities requiring between $20 million and $75 million of initial equity capital. ONCAP II was formed to continue the successful track record established by ONCAP I, a $400 million small-cap private equity fund formed by Onex at the end of 1999. ONCAP I acquired six businesses during its investment period and based on its performance to date, is expected to rank among the highest of all vintage 1999 private equity funds in North America. The investment activities of ONCAP II will be managed by the same core management team responsible for the success of ONCAP I.

"We are delighted by the support and enthusiasm we have received from our existing investors and look forward to working with them and with our new investors in the coming years," said Michael Lay, Managing Partner of ONCAP. "The ONCAP team remains focused on identifying attractive new opportunities for ONCAP II while continuing to build and realize the value of the operating companies that we currently own."

"ONCAP benefits from the focus of a dedicated team and from the scale, reach and experience of the entire Onex organization," added Andrew Sheiner, Managing Director of Onex. "This combination has allowed ONCAP to build terrific businesses in partnership with management over the past seven years and gives us great confidence in the prospects of the new fund."

ONCAP II is being launched with two transactions already completed: (i) the acquisition of CSI Global Education, the leading provider in Canada of financial education and testing services for the financial community; and (ii) the acquisition of a controlling interest in Environmental Management Solutions (TSX:EMS), a leading environmental services company specializing in the management, treatment, re-use and disposal of organic waste and contaminated soil.

Onex Corporation is a diversified company with annual consolidated revenues of approximately $20 billion and consolidated assets of approximately $15 billion. Onex is one of Canada's largest companies with global operations in service, manufacturing and technology industries. Its operating companies include Celestica Inc., Spirit AeroSystems, Inc., Emergency Medical Services Corporation, Skilled Healthcare Group, Inc., ClientLogic Corporation, Cineplex Entertainment Limited Partnership, Res-Care, Inc., Cosmetic Essence, Inc., Center for Diagnostic Imaging, Inc., Radian Communication Services Corporation and Onex Real Estate Partners LP. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX.

This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.

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

Onex' security filings can also be accessed at http://www.sedar.com/.

Contact Information

  • Onex
    Andrew J. Sheiner
    (416) 362-7711
    or
    ONCAP
    Michael Lay
    (416) 214-4300