Onex Corporation

Onex Corporation

March 26, 2007 14:11 ET

Onex Acquires Hawker Beechcraft

TORONTO, ONTARIO and NEW YORK, NEW YORK--(CCNMatthews - March 26, 2007) -

All amounts in Canadian dollars unless otherwise stated

Onex Corporation (TSX:OCX) announced today that it and GS Capital Partners, an affiliate of Goldman Sachs, have completed the $3.8 billion (US$3.3 billion) acquisition of Raytheon Aircraft Company, the general aviation, special-mission and trainer aircraft business of Raytheon Company (NYSE: RTN).

The business, headquartered in Wichita, Kansas and now operating as Hawker Beechcraft Corporation, is a leading manufacturer of business jet, turboprop and piston aircraft through its Hawker and Beechcraft brands. Its products include the Hawker 850XP, the best selling business jet family in the history of the general aviation industry, as well as the industry's best selling turboprop line with the King Air family. The company is also a significant manufacturer of military training aircraft to the U.S. Air Force and Navy and to foreign governments.

"We continue to believe strongly in the growth prospects for the business aviation sector, fuelled by new demand globally and supported by a robust market in North America," said Nigel Wright, an Onex Managing Director. "The company's brands are acknowledged leaders in the sector and its management team, lead by CEO Jim Schuster, has the skills, experience and vision to enhance and grow the business and create substantial additional value."

"As the past few years have shown, Onex views the aerospace industry as a terrific source of opportunities to find and create value," continued Mr. Wright. "We have dedicated substantial resources to developing our industry knowledge and expertise and to establishing valuable relationships that will allow us to make the most of those opportunities, both in the healthiest sectors of the industry and in those sectors facing challenges. We will continue to build those capabilities and to seek out new opportunities and the skilled management teams to help us realize them."

The equity investment of approximately $1.23 billion (US$1.05 billion), includes a significant investment by Hawker Beechcraft management and is otherwise being split equally between Onex and GS Capital Partners, with Onex' share of the investment to be made by Onex Partners, Onex' large cap private equity fund. Onex Corporation, as the largest participant in Onex Partners, will invest approximately $237 million (US$205 million).

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 in excess of $60 million and is entitled to a carried interest on approximately $3.6 billion of third party capital.

Onex is a diversified company with annual consolidated revenues of approximately $19 billion and consolidated assets of approximately $23 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.

Onex' security filings can be accessed at

Contact Information

  • Onex Corporation
    Nigel S. Wright
    (416) 362-7711
    Onex Corporation
    Donald W. Lewtas
    (416) 362-7711