Onex Corp.’s carve-out strategy has produced another solid return.
Over the years, carve-outs have become a go-to strategy for the buyout shop founded by Gerry Schwartz. The playbook goes like this: Look for a slightly forgotten division in a company that produces goods for that company, but which could be a lot busier and more efficient if it could also do more work for competitors. Buy division. Expand customer list. Drive up profitability. Sell for tidy profit.