Onex Corporation
TSX : OCX

Onex Corporation

March 21, 2014 08:00 ET

Onex to Sell The Warranty Group for $1.5 Billion

TORONTO, ONTARIO--(Marketwired - March 21, 2014) - All amounts in U.S. dollars unless otherwise stated. Onex Corporation ("Onex") (TSX:OCX) and its affiliates (the "Onex Group") today announced they have agreed to sell The Warranty Group ("TWG") to an affiliate of TPG Capital for an enterprise value of approximately $1.5 billion, including earnings the business generates from December 31, 2013 through closing. The transaction is expected to close during the third quarter of 2014 and is subject to customary closing conditions including regulatory approval.

The Onex Group made a $498 million equity investment in TWG in November 2006. Upon completion of the transaction, the Onex Group will have received proceeds of approximately $1.5 billion, including prior distributions of $403 million, which will result in a multiple of invested capital of approximately 3.1 times and an 18% rate of return. Onex' portion of the proceeds would be approximately $385 million, including carried interest.

"This is a very good outcome for Onex' shareholders and our limited partners," said Bobby Le Blanc, a Senior Managing Director of Onex. "TWG's performance is a testament to our approach of identifying attractive carve-out opportunities and partnering with management teams to build industry-leading businesses and improve operational efficiency on a standalone basis."

"We wish Tom Warsop and the rest of the TWG management team continued success," added Mr. Le Blanc. "TWG's management has created significant value for Onex for which we are grateful."

About Onex

With offices in Toronto, New York and London, Onex is one of the oldest and most successful private equity firms. Onex acquires and builds high-quality businesses in partnership with talented management teams. The Company has approximately $19 billion of assets under management, including $6 billion of Onex capital, in private equity, credit securities and real estate. Onex invests its capital directly and as the largest limited partner in each of its Funds.

Onex' businesses have assets of $44 billion, generate annual revenues of $33 billion and employ approximately 232,000 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

  • Onex Corporation
    Emma Thompson
    Vice President, Investor Relations
    416.362.7711
    www.onex.com