Onex Corp. said Monday that it’s closed its $871 million buy of JELD-WEN Holding. The deal was originally announced in May. Onex is one of Canada’s top PE firms, while JELD-WEN, of Klamath Falls, Ore., is a door maker.
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Onex Corp’s ONCAP raised a third fund, the TSX-listed investment firm, closed its third fund with $800 million Canadian committed. The fund will consist of $520 million in outside capital and $280 million that is being contributed from Onex. In June, ONCAP III completed its first transaction with the acquisition of Hopkins Manufacturing Corporation.
Onex Corp. said Monday that it will invest $864 million into JELD-WEN. This is up from the previously announced $675 million it had planned to invest in the Oregon-based door maker. The investment from Onex will be made in two tranches and include $675 million in convertible preferred stock as well as $189 million in a convertible note. Onex’s share of the investment will be about $295 million. The deal was originally announced in May.
Tomkins, the UK manufacturing firm, is selling Stackpole International after eight years.
The Sterling Group, a Houston PE firm, is the buyer.
Tomkins acquired Stackpole in 2003 for C$331 million (now valued at US$349 million), according to reports. Toronto-based Stackpole makes automotive powertrain systems and components.
Now here’s where things get confusing. Last year, Onex Corp. and the Canada Pension Plan Investment Board bought Tompkins for US$4.5 billion. Onex and the CPP Investment Board formed Pinafore to buy Tomkins.
ONCAP Management Partners, the middle market PE platform of Onex Corp., has acquired Hopkins Manufacturing Corp. Financial terms weren’t announced. The seller was Friend Skoler & Co., a PE firm based in Saddle Brook, N.J. Hopkins Manufacturing makes branded automotive aftermarket products. Bram Hall, Will Cooper, Matt Salisbury and Ches Riley of BlackArch Partners advised on the sale of the company.
Long before the pay-to-play scandals in present-day New York and New Mexico came a whopper of one more than a decade ago in the state of Connecticut.
Today a firm that took a glancing blow from that scandal is emerging with a new name, HCI Equity Partners; a fresh $200 million fund; and a strategy of buying and selling small but growing industrial products and services companies generating $20 million to $200 million in annual revenue.
The firm has also scored some recent exits. HCI Equity was expecting today to close the sale of its stake in Mistras Group Inc., whose products are used to test the integrity of tanks, pipes, valves and other industrial products. In March the firm sold its stake in Progressive Waste Solutions, which provides waste disposal services to both commercial and residential customers. Both companies are traded on the New York Stock Exchange.
A quick history lesson to demonstrate the challenges the firm overcame: In 1999 the disgraced ex-treasurer of Connecticut, Paul Silvester, pleaded guilty to racketeering charges for accepting payments—or directing payments to others—in return for making state pension-fund commitments to several investment firms. (Sound familiar?)
Onex Corp. plans to invest $675 million in JELD-WEN Holdings Inc., Reuters reported. It intends to pay $475 million to acquire a 39 percent stake in the Oregon-based door maker.Onex Corp. of Canada plans to invest $200 million through a convertible note that can be redeemed within 18 months.
TMS International Corp., which is majority owned by buyout shop Onex Corp., sold fewer shares than expected at a price below the proposed range in its IPO, Reuters reported. The company sold 11.2 million shares for $13 each, raising $145.6 million in the offering, Reuters reported. TMS and a group of its stakeholders had planned to sell 6.25 million shares each for $15 to $17 each.
The great start of the current year should bode well for other firms looking to the IPO market to exit some investments. At least eight portfolio companies have registered or are expected to file their plans to go public with the Securities and Exchange Commission so far this year.
None have the scale of either HCA Holdings Inc. or Kinder Morgan, but two are expected to submit plans seeking to raise around $1 billion each. One of these is Allison Transmission Inc., which is backed by Carlyle Group and Onex Corp. Indianapolis-based Allison Transmission is looking to go public in the third quarter. The maker of automatic transmissions for school buses and other vehicles hired Bank of America Merrill Lynch, Citi, Credit Suisse, Morgan Stanley and JPMorgan & Co. to serve as underwriters.
The other portfolio that could seek $1 billion through an IPO is DLJ South American Partners LP’s Arcos Dorados SA, which owns and operates McDonald’s fast food chain restaurants in Argentina.
The following chart lists some of the portfolio companies considering an IPO:
HCA, the hospital operator with a massive debt load, is expected to price its IPO tonight (they’re offering 124 million shares at $27 to $30 each) and begin trading tomorrow. The $4.06 billion deal is expected to be the largest private equity backed offering EVER.
In honor of this colossal event, peHUB.com has a slideshow of the top 10 largest U.S. PE-backed IPOs. The data is supplied by Thomson Reuters.