Onex Corporation
TSX : OCX

Onex Corporation

September 15, 2008 08:30 ET

Onex to Acquire 50% Interest in RSI Home Products

TORONTO, ONTARIO and NEW YORK, NEW YORK--(Marketwire - Sept. 15, 2008) -

All amounts in Canadian dollars unless otherwise stated

Onex Corporation ("Onex") (TSX:OCX) announced today that it has agreed to acquire a 50% interest in RSI Home Products, Inc. ("RSI"), a leading U.S. manufacturer of cabinetry for the residential marketplace, for a purchase price of US$318 million. The remaining 50% of RSI will continue to be owned by Mr. Ronald Simon, the company's founder and Chairman, and other existing shareholders.

Founded in 1989 by Mr. Simon, RSI has grown to become one of America's largest manufacturers of cabinetry for the home. RSI makes kitchen, bath, and home organization products for sale in the United States and Canada through home centers, kitchen and bath dealers, and other distributors. RSI employs more than 5000 people in its locations in California, Kansas, North Carolina, Mexico, and China. For the twelve months ended June 30, 2008, RSI generated revenues of approximately US$480 million.

"We believe that RSI's manufacturing expertise, product innovation, and customer service capabilities position the company extremely well to take advantage of the eventual recovery in the repair and remodeling industry" said Anthony Munk, an Onex Managing Director. "We are excited to be investing alongside RSI's founder, Ron Simon, and its exceptional management team led by President and CEO, Alex Calabrese."

Mr. Simon commented, "We see tremendous growth possibilities for RSI and are excited to have Onex as our partner. We believe that Onex' resources, strategic guidance and experience in working with companies like ours will enable RSI to achieve its aggressive growth plans." Mr. Calabrese added, "With RSI's unsurpassed manufacturing excellence and unique position in the industry, our opportunities to grow have never been better. Partnering with Onex will provide us with even greater resources to take advantage of those opportunities."

The US$318 million investment will be made by Onex Partners, Onex' large cap private equity fund, with Onex Corporation, as a limited partner in that fund, investing approximately US$126 million of that amount. The investment will take the form of a convertible preferred security representing a 50% economic and voting interest in RSI, subject to a minimum preferred return of 10% to Onex upon realization. The transaction is subject to customary regulatory approvals and closing is anticipated in early October. Barrington Associates, a division of Wells Fargo Securities, LLC, represented RSI in this transaction.

About Onex

Onex makes private equity investments through the Onex Partners and ONCAP families of funds. Onex also manages alternative asset platforms focused on Real Estate and Credit Securities. Through its Funds, Onex generates annual management fee income from third parties and is also entitled to a carried interest on $6.4 billion of that capital.

In addition, Onex invests its own approximately $4 billion of capital in both direct investments and as a Limited Partner in its Funds. Onex' businesses generate annual revenues of $35 billion, have assets of $39 billion and employ 235,000 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.

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