TORONTO, ONTARIO -- (Marketwire) -- 02/22/13 -- All amounts in U.S. dollars unless otherwise stated
Onex Corporation ("Onex") (TSX: OCX) today announced its consolidated financial results for the fourth quarter and full year ended December 31, 2012 and an update on matters following year-end.
-- In 2012, Onex Partners acquired four businesses - SGS International, KraussMaffei, USI and BBAM - for a total purchase price of $4.2 billion. The total equity investment was $1.4 billion, of which Onex' share was $457 million.-- Including realizations and distributions, the value of Onex' interest in Onex Partners' and ONCAP's private investments grew by 17% and 23%, respectively, in 2012. Overall, Onex' proprietary capital, including $1.1 billion of cash and near-cash items, grew by 12% on a per share basis to $41.42.-- Onex opened an office in London, England to support continued growth of its investing activities.-- Onex Credit Partners completed two collateralized loan obligation ("CLO") offerings, raising approximately $840 million, including $58 million from Onex.-- In March, Allison Transmission completed a $690 million initial public offering priced at $23.00 per share compared to Onex' original cost of $8.44 per share.-- In July, Onex completed the sale of Center for Diagnostic Imaging, realizing a multiple of invested capital of 2.0 times.-- In December, Tomkins paid a $1.2 billion distribution, of which Onex' share was $171 million, representing 54% of the original equity investment.-- In December, ONCAP acquired Bradshaw International, a designer and marketer of everyday houseware products, for an equity investment of $80 million, of which Onex' share was $24 million.-- Earlier this month, Onex agreed to sell its 50% interest in RSI Home Products, resulting in a multiple of invested capital of 1.5 times.
Acquiring and Building Businesses
"2012 was a busy year for Onex with the acquisition of five businesses," said Gerald W. Schwartz, Chairman and Chief Executive Officer of Onex. "These investments reflect years of effort evaluating industry sectors and developing relationships with management teams."
USI, the ninth largest insurance broker in the United States, offers a broad range of property and casualty, and employee benefits insurance products to middle-market businesses. Onex' acquisition follows seven years researching the insurance brokerage sector. USI has a unique fully-integrated operating model and a proven add-on acquisition strategy, completing three acquisitions since the closing of Onex' investment. Onex Partners III invested $510 million, of which Onex' share was $128 million as a limited partner in the Fund. Including an additional $126 million co-investment, Onex' initial investment was $254 million. A process is underway to offer a portion of the co-investment to third-party limited partners and employees of USI.
BBAM is a leading manager of leased commercial aircraft. Over its 23-year history, the company has provided fleet and financing solutions to over 200 airline customers in more than 50 countries. BBAM provides asset management services to leasing companies, aviation investors and financial institutions covering more than 450 aircraft valued in excess of $13 billion. The BBAM investment is a proprietary opportunity that resulted from several years evaluating the aircraft leasing sector. Onex Partners III acquired a 50% interest in BBAM for $165 million, of which Onex' share was $42 million. In connection with this transaction, Onex Partners III also invested $20 million in newly issued shares of FLY Leasing Limited ("FLY") (NYSE: FLY), a global lessor of commercial jet aircraft managed by BBAM. Onex' share of the investment in FLY was $5 million.