Investment firm Onex holds equity interests in companies across several industries in North America. It mainly focuses on manufacturing and health care, but has holdings in the financial services, building products, and transportation sectors. While large-cap private equity is its biggest segment, the company also invests in debt and credit securities and real estate, including real estate investment trusts, commercial real estate loans, and residential developments. Its ONCAP family of private equity funds invests in mid-cap firms. Altogether, Onex has some $11.8 billion in third-party capital under management and about $14.1 billion in all. Onex also owns US insurance brokerage firm USI.
Onex is stationed in Ontario, Canada, and has other offices in London and New York. The US accounts for 60% of its revenue. Other major markets include Europe(19%) and Asia and Oceania (13%).
The company's portfolio includes interests in Spirit AeroSystems, The Warranty Group, electronics manufacturer Celestica, and business process outsourcer Sitel, in addition to minority stakes in airplane manufacturer Hawker Beechcraft. (It sold off its remaining stake in Allison Transmission in late 2014.) Onex's health care holdings include Res-Care, Skilled Healthcare Group, and the Center for Diagnostic Imaging.
Onex achieved a revenue milestone in 2013, generating a record-setting $27.8 billion. However, the firm posted net losses of $121 million in 2012 and $354 million in 2013 primarily due to higher operating expenses and a loss from continuing operations.
The historic revenue growth for 2013 was driven by a 9% increase in its building products segment revenue as a result of higher revenue from North America and Europe. North American segment revenue climbed due to increased demand from new customers in addition to a previous acquisition.
When considering acquisitions, Onex seeks out growth investments, restructurings, and subsidiaries or divisions being sold by large corporations. It prefers to take a controlling position in its holdings, which enables it to make strategic decisions, though Onex does not usually get involved in the day-to-day activities of its companies.
In late 2014 it agreed to pay up to $4.6 billion for Swiss packaging company SIG Combibloc. Onex subsidiary USI also in 2014 agreed to acquire more than 40 insurance brokerage and consulting locations nationwide from financial services company Wells Fargo & Company.