Onex Corporation
TSX : OCX

Onex Corporation

November 25, 2009 17:38 ET

Onex Sells Partial Stake in Emergency Medical Services for 7 Times Cost

TORONTO, ONTARIO--(Marketwire - Nov. 25, 2009) -

All amounts in Canadian dollars unless otherwise stated

Onex Corporation (TSX:OCX) announced today that it has sold part of its interest in Emergency Medical Services Corporation (NYSE:EMS) in a secondary offering of 8 million shares of class A common stock at a price of US$48.31 per share. The transaction represents the sale of approximately 35% of the Onex group's interest in EMSC. The underwriters will have a 30-day option from November 19, 2009 to purchase up to an additional 1.2 million shares of class A common stock from the Onex group.

Of the total offering, Onex Corporation sold approximately 3.0 million shares for net proceeds of about US$151 million including carried interest. Based on a per-share cash cost of US$6.67 to acquire the business in 2005, this sale of shares resulted in a multiple of invested capital of about 7 times. With the sale of these shares, the Onex group continues to own approximately 35% of EMSC's equity, of which Onex' share is approximately 13%.

This is Onex' second offering of EMSC shares following the sale of a partial stake in its investment for US$40.00 per share in August 2009. Since then, EMSC's share price has increased by about 20%. These two secondary offerings have provided the Onex group with net proceeds of about US$719 million, of which approximately US$288 million is Onex' share.

"The success of EMSC exemplifies Onex' long-held investment strategy of acquiring attractive businesses with outstanding management teams at reasonable prices using prudent leverage," said Robert Le Blanc, Managing Director of Onex.

"EMSC's management team continues to do an exceptional job of strengthening the company's position as a leading provider of emergency medical services," continued Mr. Le Blanc. "We look forward to working closely with the company to further build on its impressive achievements and to help find opportunities to grow organically and through acquisitions."

Onex now has over $1 billion in cash and near-cash investments, no debt and US$3.5 billion of uncalled third-party capital available, positioning it well to actively participate in significant investment opportunities.

About Emergency Medical Services Corporation

Emergency Medical Services Corporation (EMSC) is a leading provider of emergency medical services in the United States. EMSC operates two business segments: American Medical Response, Inc. (AMR), the Company's healthcare transportation services segment, and EmCare Holdings Inc. (EmCare), the company's outsourced hospital-based physician services segment. AMR is the leading provider of ambulance services in the United States. EmCare is a leading provider of outsourced emergency department and hospital-based physician services. In 2008, EMSC provided services to 11.4 million patients in nearly 2,100 communities nationwide. EMSC is headquartered in Greenwood Village, Colorado.

About Onex

Onex is one of North America's oldest and most successful private equity firms. Onex is committed to acquiring and building high-quality businesses in partnership with talented management teams through the Onex Partners and ONCAP families of Funds. Onex also manages investment platforms focused on real estate and credit securities. In total, the Company manages approximately US$11 billion. Onex generates annual management fee income and is entitled to a carried interest on approximately US$7 billion of third-party capital, and also invests its own capital directly and as a substantial limited partner in its Funds.

Onex' businesses generate annual revenues of $33 billion, have assets of $38 billion and employ 206,000 people worldwide. 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. The Company's security filings can also be accessed at www.sedar.com.

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.

Contact Information

  • Onex Corporation
    Robert Le Blanc
    Managing Director
    212.582.2211
    or
    Onex Corporation
    Emma Thompson
    Director, Investor Relations
    416.362.7711