Onex Corporation

Onex Corporation

October 24, 2005 08:57 ET

Onex to Acquire Skilled Healthcare Group

TORONTO, ONTARIO--(CCNMatthews - Oct. 24, 2005) -

Leading Operator of Long-Term Care Facilities

All amounts in Canadian dollars unless otherwise stated

Onex Corporation (TSX:OCX.SV) announced today that it has agreed to acquire Skilled Healthcare Group, Inc., a leading operator of long-term care facilities in the western United States, in a transaction valued at approximately $750 million.

Skilled Healthcare's subsidiaries, operating a total of 70 skilled nursing and assisted living facilities in California, Texas, Kansas and Nevada, focus on providing care to patients requiring intensive treatment and a high level of skilled nursing care. The company's subsidiaries also provide rehabilitation therapy services in its affiliated facilities and for third parties. The company has recently established a growing subsidiary hospice care business.

The equity investment of approximately $265 million will be made through Onex Partners, Onex' $2.1 billion private equity fund, and will include a significant investment by Skilled Healthcare's senior management team. This is the sixth healthcare business Onex has acquired or invested in since the beginning of 2004.

"We are excited about Skilled Healthcare and its prospects and are eager to partner with a motivated and experienced management team that has established a track record of superior growth and operating performance," said Robert Le Blanc, an Onex Managing Director. "The company has a leading presence in many of its markets and is well-positioned to take advantage of attractive growth opportunities."

"This company has been built by the hard work of more than 9,000 dedicated employees caring for more than 6,500 lives every day, and we are thrilled to be able to share with them the opportunities that our new partnership will bring," said Boyd Hendrickson, Skilled Healthcare's Chief Executive Officer. "We are delighted to have found in Onex a partner with substantial knowledge of our industry and a desire to work with us to grow and expand our business. Onex clearly shares management's vision of the opportunities for a long-term care operator that delivers responsive, high quality and cost-effective services to support a full range of patient needs and acuity levels."

The acquisition is subject to customary conditions, including receipt of required regulatory approvals, and is expected to close before the end of year or in early 2006.

Onex Corporation is a diversified company with annual consolidated revenues of approximately $17 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., Magellan Health Services, Inc., Emergency Medical Services Corporation, ClientLogic Corporation, Cineplex Galaxy LP, 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

Onex' security filings can be accessed at

This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events, or otherwise.

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