Onex Corp. and a private equity affiliate are selling their combined 60 per cent stake in TMS International Corp. for $410-million (U.S.).
Onex announced Monday that company is being acquired by an affiliate of the Pritzker Organization LLC, which will pay $17.50 per share in cash for the remaining 23.4 million shares held by Onex and Onex Partners II, one of its private equity investment platforms.
The deal is expected to close in the fourth quarter.
Onex’s portion of these proceeds would be $172-million, including carried interest of $10-million, it said.
The Onex Group has invested $249-million in the company since 2007. Following this sale, the Onex Group will have received total proceeds of $504-million, including proceeds from the company’s earlier initial public offering and prior distributions.
TMS International Corp., through its subsidiaries including Tube City IMS, is the largest provider of outsourced industrial services to steel mills in North America as well as a substantial international presence.
“TMS’s strong relationships with leading global steel producers and its relentless focus on delivering exceptional value for its customers resulted in significant growth for the business, particularly internationally, despite challenging market conditions,” said Tim Duncanson, a managing director of Onex.
“We have thoroughly enjoyed our partnership with the TMS management team and wish them continued success,” Duncanson said in a statement.
Onex, with offices in Toronto, New York and London, is a private equity firm with approximately $16-billion of assets under management, including $5-billion of Onex capital, in private equity, credit securities and real estate.
Onex’s businesses have assets of $45-billion, generate annual revenues of $36-billion and employ approximately 236,000 people worldwide.