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Onex Corporation Chairman of the Board, President and Chief Executive Officer Gerald Schwartz speaks at the company's annual general meeting in Toronto on Thursday, May 10, 2012.
Onex Corporation Chairman of the Board, President and Chief Executive Officer Gerald Schwartz speaks at the company's annual general meeting in Toronto on Thursday, May 10, 2012.
(Nathan Denette/CP)

Onex’s carve-out strategy produces another win

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.