Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Onex Corp. chairman, president and chief executive Gerald Schwartz speaks at the company's annual general meeting in Toronto on May 10, 2012. (Nathan Denette/THE CANADIAN PRESS)
Onex Corp. chairman, president and chief executive Gerald Schwartz speaks at the company's annual general meeting in Toronto on May 10, 2012. (Nathan Denette/THE CANADIAN PRESS)

Onex revenue up 12% from year ago Add to ...

Onex Corp. plans to speed up acquisitions by SGS International, the graphics design and packaging services company the private equity investment firm bought earlier this year, chief executive Gerald Schwartz said Wednesday.

Mr. Schwartz said that the graphics services industry is highly fragmented and ripe for consolidation.

More Related to this Story

“Working with management, we are already working on and in fact have completed one acquisition which will extend the company’s services to point-of-purchase displays and in-store banners for retail customers,” he said.

Onex reported a profit attributable to shareholders of $175-million (U.S.), or $1.52 per share, for the quarter ended Sept. 30, compared with $146-million, or $1.25 per share, a year ago.

Revenue grew to $6.71-billion, up from $6.01-billion.

Onex attributed the increase in part to acquisitions in 2011, including the Jeld-Wen window business.

During the quarter, Onex closed its $813-million acquisition of SGS International, which provides graphics design and packaging services to the consumer products industry. Onex Partners III invested $260-million, of which Onex’s share was $66-million as a limited partner.

Mr. Schwartz said the business has strong management and growing market share.

“Under our ownership we intend to accelerate SGS’s acquisition strategy,” he said.

Onex also recently agreed to buy KraussMaffei, a manufacturer of plastic and rubber processing equipment, in a deal valued at €568-million.

Onex Partners III is expected to make an equity investment of approximately $340-million, of which Onex’s share is $86-million.

Mr. Schwartz called KraussMaffei a global business with a strong franchise and opportunities to improve performance.

“We are already at work with the management team to identify and go after these very opportunities. We expect to close this purchase by the end of March of 2013,” he said.

The recent investments come amid volatile equity markets and an uncertain outlook for the global economy.

Onex, which has roughly $1.5-billion in cash and other short-term investments as well as $2.2-billion in uncalled committed third-party capital, noted that “while the private equity origination market has improved this year, it is still very competitive.”

The company manages about $14-billion including roughly $9.6-billion in third-party capital.

Onex holds investments in a wide range of companies including a large stake in electronics maker Celestica Inc.

Shares in the company, which reported its results after the close of markets, were down 29 cents at $40.40 on the Toronto Stock Exchange.

Follow us on Twitter: @GlobeInvestor

 
Security Price Change
OCX-T Onex Corporation 64.60 -0.05
-0.077 %
Add to watchlist
Live Discussion of OCX on StockTwits
More Discussion on OCX-T

Topics:

In the know

Most popular video »

Highlights

More from The Globe and Mail

Most Popular Stories