Onex Corporation
TSX : OCX.SV

Onex Corporation

November 04, 2005 08:52 ET

Onex Sells Remaining Interest In Magellan Health Services

TORONTO, ONTARIO--(CCNMatthews - Nov. 4, 2005) -

All amounts in Canadian dollars unless otherwise stated

Onex Corporation (TSX:OCX.SV) today announced that it is selling for distribution to the public its remaining interest in Magellan Health Services, Inc. (Nasdaq: MGLN). The 3.76 million shares of Magellan common stock are owned by Onex Partners, Onex' $2.1 billion private equity fund, and are being sold for net proceeds of approximately $125 million, of which Onex' share will be approximately $33 million. The transaction is expected to close on or about November 9, 2005.

Onex and Onex Partners invested $131 million in Magellan beginning in January 2004 for a 24% ownership interest and sold a portion of their interest in May 2005 for net proceeds of $176 million. Following the completion of the transaction announced today, Onex and Onex Partners will have realized approximately $301 million in aggregate net proceeds in respect of the Magellan investment, of which Onex' share, acquired at a cost of $31 million, will have been approximately $80 million.

This communication shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of, these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Shares are offered only pursuant to a prospectus. Copies of the prospectus may be obtained from J.P. Morgan Securities Inc., Prospectus Department, 277 Park Avenue, New York, NY 10172.

Onex Corporation is a diversified company with annual consolidated revenues of approximately $16 billion and consolidated assets of approximately $14 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, ClientLogic Corporation, Cineplex Entertainment Limited Partnership, J.L. French Automotive Castings, Inc., Res-Care, Inc., Cosmetic Essence, Inc., Center for Diagnostic Imaging, Inc. and Radian Communication Services Corporation. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX.SV.

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
    Donald W. Lewtas
    (416) 362-7711