Onex Corporation
TSX : OCX

Onex Corporation

December 21, 2006 08:00 ET

Onex and Goldman Sachs Agree to Acquire Raytheon Aircraft Company

TORONTO, ONTARIO and NEW YORK, NEW YORK--(CCNMatthews - Dec. 21, 2006) -

All amounts in Canadian dollars unless otherwise stated

Onex Corporation (TSX:OCX) announced today that it is joining with GS Capital Partners, an affiliate of Goldman Sachs, to acquire Raytheon Aircraft Company, the business aviation division of Raytheon Company (NYSE:RTN). The transaction is valued at approximately $3.8 billion (US$3.3 billion) and will be completed by Hawker Beechcraft Corporation, a company newly-formed by Onex and GS Capital Partners.

Raytheon Aircraft, headquartered in Wichita, Kansas, is a leading manufacturer of business jet, turboprop and piston aircraft through its Hawker and Beechcraft brands and is the fifth largest business jet producer in the world. It is also a significant manufacturer of military training aircraft to the U.S. Air Force and Navy, and to a small number of foreign governments.

"We believe strongly in the future growth of the business aviation sector, as new demand in Europe and Asia adds to strength in North America," said Nigel Wright, an Onex Managing Director. "The Hawker, King Air, and Beechcraft brands are recognized leaders in business aviation. We believe that the company's management team, lead by its CEO Jim Schuster, can build on that strength and create additional value through operational improvements."

"More generally, we have become increasingly optimistic about the aerospace industry as we have made it a significant focus for Onex in the past few years," added Mr. Wright. "Our growing experience and expertise, along with our solid relationships in the industry broadly and in the Wichita business environment specifically, give us a great deal of confidence that this investment represents a terrific opportunity for all involved."

The equity investment of approximately $1.22 billion (US$1.06 billion) will be split equally between Onex and GS Capital Partners, with Onex's share of the investment to be made by Onex Partners, Onex's large cap private equity fund. Onex Corporation's investment is expected to be approximately $244 million (US$212 million). The transaction is subject to customary regulatory approvals and closing is anticipated in the first half of 2007.

About Onex

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.

About Raytheon

Raytheon Company is an industry leader in defense and government electronics, space, information technology, technical services, and business and special mission aircraft. With headquarters in Waltham, Mass., Raytheon employs 80,000 people worldwide.

About GS Capital Partners

Founded in 1869, Goldman Sachs is one of the oldest and largest investment banking firms. Goldman Sachs is also a global leader in private corporate equity and mezzanine investing. Established in 1991, the GS Capital Partners Funds are part of the firm's Principal Investment Area in the Merchant Banking Division. Goldman Sachs' Principal Investment Area has formed 12 investment vehicles aggregating $35 billion of capital to date.

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

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

Contact Information

  • Onex Corporation
    Nigel S. Wright
    (416) 362-7711
    or
    Onex Corporation
    Donald W. Lewtas
    (416) 362-7711
    Website: www.onex.com