The Globe and Mail

Onex bought an airline catering company when U.S. jet fleets were in one of their all-too-frequent flameouts. The investment was a home run.
Onex grabbed a movie chain when everyone was focused on over-capacity in theatres  and the rise of DVDs. That was another big winner.
Now Gerry Schwartz and his partners are at it again. At a time when investors  are down on Canadian manufacturers – they can’t compete when the Loonie is taking flight, don’t you know – and private equity is pulling in its horns, Onex drops $960-million on Husky Injection Molding Systems. Citigroup ran this difficult auction for the Bolton, Ont.-based maker of plastic bottle makers.
Watch for another textbook case of the Onex approach to building a company.
Rival private equity funds fell away because they couldn’t see how to make a Husky buyout work with a relatively expensive Canadian work force.
Onex’s single greatest talent in past deals has been winning concessions from employees in return for equity – a process that changes corporate cultures for the better and usually produces paydays for the staff.
Full marks to Husky founder Robert Schad for what he’s created, and here’s hoping the $384-million he is about to receive goes to great environmental causes.
Now look for Husky to quietly acquire other manufacturers as it expands globally, lower its costs, and reappear on public markets in few years time as a far stronger and more valuable entity.