Onex Corporation

  • Overview
THE SCOOP

O, Canada!

This Toronto-based private equity company has a consistent record of success in more than 25 years in the business.  Onex went public on the Toronto Stock Exchange in 1987, raising C$242 million for its initial public offering.  Today, the company boasts $10 billion in assets under management and invests out of a $3.45 billion fund.  In the past 20 years, it has generated a 19 percent annual compound return on its shares and a 29 percent IRR.  The company boasts annual revenues of $33 billion with assets amounting to $40 billion and employs 211,000 people worldwide.

Onex was launched in 1984 as a private equity investor but since has expanded into the field of asset management.  The company also manages a real estate platform, Onex Real Estate Partners and a credit investing division, Onex Credit Partners.  Onex's private equity business has two branches:  Onex Partners and the ONCAP fund families.  Prior to the launch of these two structured funds, Onex made all its investments directly.  The firm still has two direct investments: Celestica, Inc. and SITEL Worldwide.

Fabulous funds

The first Onex Partners Fund was launched in November 2003 with capital of $1.66 billion and has since completed 10 acquisitions and achieved an internal rate of return (IRR) of 74 percent on June 30, 2009.  Onex Partners II started in August 2006 with a value of $3.45 billion.  In 2008, Onex Partners III began with targeted third-party commitments of $3.5 billion and around $500 million commitment from Onex.  Onex’s third-party capital reached $500 million on June 30, 2009.

The ONCAP funds have a bit narrower focus than Onex Partners and have historically been a bit smaller.  ONCAP's investments are primarily medium-sized businesses in North America.  ONCAP I was launched in 1999, raising $400 million.  This allowed Onex to invest in six platform companies and achieve a 43 percent IRR in 2007.  ONCAP II has a value of $574 million and is currently invested in five companies: CSI Global Education, EnGlobe Corp., Mister Car Wash, CiCi’s Pizza and Caliber Collision Centers.

Hunting for a buy

Lack of liquidity in the credit markets significantly slowed the pace of business for Onex in 2008.  In December 2007, Onex acquired Canadian molding-equipment company Husky Injection Molding Systems for C$960 million but then quickly dropped off the public radar and remained silent for the following two quarters.  In September 2009, Onex said that it is pondering on acquiring commercial real estate in the United States but does not want to spend its C$4 billion war chest for such investments.  Onex Managing Director Andrew Sheiner said, “Our hope is that we will be able to partner with some of our institutional relationships to take advantage of the looming crisis in the U.S. commercial real estate industry.â€

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Onex Corporation


712 Fifth Avenue
New York, NY 10019
Phone: (212) 582-2211
Fax: (212) 582-0909
www.onexcorp.com

STATS


  • Employer Type: Public
  • Stock Symbol: OCX
  • Stock Exchange: TSE
  • Chairman, President & CEO: Gerald W. Schwartz
  • 2008 Employees: 233,000

Key Financials

  • 2008 Income: $-283 million
  • 2008 Revenue: $26,881 million

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