Onex Corporation
TSX : OCX

Onex Corporation

November 30, 2006 16:12 ET

Onex Completes Acquisition of The Warranty Group

TORONTO, ONTARIO and NEW YORK, NEW YORK--(CCNMatthews - Nov. 30, 2006) -

All amounts in Canadian dollars unless otherwise stated

Onex Corporation (TSX:OCX) announced today that it has completed the acquisition of The Warranty Group, one of the world's largest providers of extended warranty contracts, in a transaction valued at approximately $800 million (US$710 million).

TWG, previously a division of Aon Corporation, operates in 20 countries through more than 2,150 employees. TWG underwrites and administers extended warranties on a wide variety of consumer goods, including automobiles, consumer electronics and major home appliances. It also provides consumer credit and other specialty insurance products in connection with consumer loans.

"We are delighted to acquire a business with an impressive record of successful growth, extraordinary opportunities for further value creation and a truly first-class management team to seize those opportunities," said Robert Le Blanc, an Onex Managing Director. "We and TWG management are already exploring a number of initiatives to build and improve the business and to expand its product range, customer base, distribution channels and geographic footprint."

"Partnering with Onex is a major step in TWG's continuing evolution as a global leader in the extended warranty and speciality insurance business. We have become increasingly impressed with the enthusiasm and expertise of the Onex team and are looking forward to working with them to grow our business," said David Cole, Chairman and Chief Executive Officer of TWG.

The equity investment of approximately $575 million (US$510 million) was made through Onex Partners, Onex' large-cap private equity fund, and included a significant investment by TWG's senior management team. Onex Corporation's share of the investment is approximately $179 million (US$157 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 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 $19 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. 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

  • Onex Corporation
    Robert Le Blanc
    (212) 582-2211
    or
    Onex Corporation
    Donald W. Lewtas
    (416) 362-7711
    Website: www.onex.com