Onex Corporation
TSX : OCX

Onex Corporation

November 10, 2006 13:18 ET

Onex to Acquire Tube City IMS

Leading Provider of Outsourced Steel Services

TORONTO, ONTARIO and NEW YORK, NEW YORK--(CCNMatthews - Nov. 10, 2006) -

All amounts in Canadian dollars unless otherwise stated

Onex Corporation (TSX:OCX) announced today that it has agreed to acquire Tube City IMS Corporation, a leading provider of outsourced services to steel mills, in a transaction valued at approximately $720 million.

Tube City IMS, operating at 66 steel mills throughout the U.S., Canada and Europe, through its Tube City and IMS Divisions, provides raw materials procurement, scrap and materials management, and slag processing services. Headquartered in Glassport, PA, Tube City IMS employs approximately 2,350 people.

The equity investment of approximately $240 million will be made through Onex Partners II, Onex' US$3.5 billion private equity fund, and will include a significant investment by Tube City IMS' senior management team.

"We have found an exceptional and strong management team at Tube City IMS," said Tim Duncanson, an Onex Managing Director. "The company is the largest outsourced provider of these services in North America and the team has positioned Tube City IMS to become the global leader. We're excited to partner with them and work together to achieve this goal."

"Tube City IMS provides an exceptional level of service to its customers, which has resulted in an outstanding track record of customer retention, generating superior returns on capital," added Mr. Duncanson.

"Onex has a successful track record of developing global leaders, particularly in outsourcing, and we believe our company will benefit greatly from its experience," said I Michael Coslov, Chairman and Chief Executive Officer of Tube City IMS. "We are delighted to have found in Onex a partner that shares management's vision to grow and expand the business."

The acquisition is subject to customary conditions and is expected to close early in 2007.

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 earns a carried interest on approximately US$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
    Timothy Duncanson
    (416) 362-7711 or (212) 582-2211
    Website: www.onex.com