Onex Corporation
TSX : OCX

Onex Corporation

June 27, 2016 09:00 ET

Onex to Invest in WireCo WorldGroup

A leading global manufacturer of steel wire rope, synthetic rope and engineered products

TORONTO, ONTARIO--(Marketwired - June 27, 2016) -

All amounts in U.S. dollars unless otherwise stated.

Onex Corporation ("Onex") (TSX:OCX) today announced it has agreed to acquire a majority stake in WireCo WorldGroup ("WireCo") in a recapitalization transaction. WireCo is a leading global manufacturer of mission-critical steel wire rope, synthetic rope, specialty wire and engineered products. Funds managed by Paine & Partners, LLC ("Paine & Partners") will retain a minority interest alongside WireCo management. The transaction is expected to close later this year subject to customary conditions and regulatory approvals.

Founded in 1931, WireCo's multiple market-leading, premium, global brands are recognized throughout the world for their quality and reliability. Its products are used in a disparate range of applications in the industrial, onshore and offshore oil and gas, mining, fishing and maritime end-markets. Based in Prairie Village, Kansas, the company operates 24 manufacturing facilities in eight countries and employs approximately 4,000 people.

"WireCo is a trusted supplier of highly engineered, mission-critical products across a diverse range of end-markets," said Kosty Gilis, a Managing Director with Onex. "We are excited to partner with Chris Ayers and his team to support WireCo's growth both organically and through acquisitions for years to come."

Manish Srivastava, a Managing Director at Onex added, "WireCo has an exceptional management team with a proven ability to successfully execute operational efficiency initiatives while maintaining strong customer relations irrespective of market conditions."

"We are delighted to have Onex as our partner to further expand on the solid foundation we've built with Paine & Partners," said Chris Ayers, WireCo President and Chief Executive Officer. "We believe Onex' successful track record of investing in global industrial companies like ours will add tremendous value to WireCo."

Onex Partners IV, Onex' $5.7 billion private equity fund, will make an equity investment of approximately $260 million, of which Onex' share is approximately $75 million as a Limited Partner in the Fund.

About Onex

Onex is one of the oldest and most successful private equity firms. Through its Onex Partners and ONCAP private equity funds, Onex acquires and builds high-quality businesses in partnership with talented management teams. At Onex Credit, Onex manages and invests in leveraged loans, collateralized loan obligations and other credit securities. The Company has approximately $23 billion of assets under management, including $6 billion of Onex proprietary capital, in private equity and credit securities. With offices in Toronto, New York, New Jersey and London, Onex invests its capital through its two investing platforms and is the largest limited partner in each of its private equity funds.

Onex' businesses have assets of $36 billion, generate annual revenues of $23 billion and employ approximately 145,000 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.

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.

Contact Information

  • Emilie Blouin
    Director, Investor Relations
    416-362-7711