TORONTO, ONTARIO -- (Marketwired) -- 05/10/13 -- All amounts in U.S. dollars unless otherwise stated
Onex Corporation ("Onex") (TSX: OCX) today announced its consolidated financial results for the first quarter ended March 31, 2013 and an update on matters following quarter-end.
-- Including realizations and distributions, the value of Onex' interest in Onex Partners' and ONCAP's private investments grew by 5% and 4%, respectively, in the first quarter. Overall, Onex' proprietary capital, including $1.25 billion of cash and near-cash items, grew by 3% on a per share basis to $42.81.-- Onex agreed to acquire Nielsen Expositions, one of the largest operators of business-to-business tradeshows in the U.S., in a transaction valued at $950 million.-- Onex Credit Partners completed its third collateralized loan obligation ("CLO") offering, raising approximately $512 million, including $24 million from Onex.-- Onex established Meridian Aviation, which will purchase aircraft to be leased to commercial airlines and managed by BBAM, an Onex Partners III investment.-- Onex completed the sale of its interest in RSI Home Products, resulting in a multiple of invested capital of 1.5 times.-- Onex' Board of Directors approved a 36% increase in the quarterly dividend to C$0.0375 per share.-- In the four months ended April 30, Onex repurchased 945,400 shares for approximately C$42 million at an average cost per share of C$44.41.
Acquiring and Building Businesses
"After investing $1.5 billion in five businesses in the fourth quarter of last year, we have been busy working with our management teams to execute our investment plans," said Gerald W. Schwartz, Chairman and Chief Executive Officer of Onex. "The first couple of years following an acquisition are often the busiest for Onex. For each of the five businesses just acquired, we have a specific plan for improvement and growth."
"As we build value at our existing businesses, we also continue to look for new acquisition opportunities. Earlier this week, we announced the acquisition of Nielsen Expositions from its parent company," said Mr. Schwartz. "Corporate carve-outs are probably our favourite type of transaction, and we believe that this business will be in a stronger position to grow as a stand-alone company under our ownership."
Based in San Juan Capistrano, California, Nielsen Expositions produces more than 65 business-to-business tradeshows and conference events each year across nine diversified end-markets. Its strength is evidenced by its high renewal rates, long-standing exhibitor relationships, and the brand strength of the underlying shows. Onex Partners III will make an equity investment of approximately $350 million, of which Onex' share is approximately $85 million as a Limited Partner in the Fund. The transaction is anticipated to close in the second quarter, subject to customary closing conditions.
By transforming good businesses into industry leaders, Onex has generated a 29-year gross IRR of 28% and an average multiple of 2.8 times invested capital from realized, substantially realized and publicly traded investments.