OMERS Private Equity and Berkshire Partners have agreed to sell Husky IMS International Ltd, a Canadian supplier of injection molding equipment and services to the global plastics industry. Platinum Equity, a U.S. private equity firm, will buy the company for US$3.85 billion in a deal expected to close in Q2 2018. Bolton, Ontario-based Husky has production facilities in eight countries and service and sales offices in over 100 countries. Led by President and CEO John Galt, it was acquired by OMERS and Berkshire from Onex Corp for US$2.1 billion in 2011. Since then, Husky has grown its earnings by enhancing service, making acquisitions, and developing its product line.
OMERS Private Equity and Berkshire Partners Agree to Sell Husky to Platinum Equity
TORONTO, Dec. 18, 2017 (GLOBE NEWSWIRE) — OMERS Private Equity, the private equity arm of OMERS, the defined benefit pension plan for Ontario’s municipal employees, and Berkshire Partners, a Boston-based investment firm, have announced that they have agreed to sell Husky IMS International Ltd. (“Husky”, or the “Company”) to funds managed and/or advised by Platinum Equity for US$3.85 billion.
Based in Bolton, Ontario, Husky is a leading industrial technology provider to the plastics processing industry, providing an unprecedented level of innovation for injection molding applications. Husky delivers its products and services to a wide range of customers in various end-markets across the globe with over 75% of revenues generated outside of North America. The Company has manufacturing facilities in eight countries and more than 40 service and sales offices supporting customers in over 100 countries. In addition to complete injection molding solutions, Husky provides aftermarket services and parts to a large and growing installed base of systems globally.
Since acquiring Husky in 2011, OMERS and Berkshire have worked with the Company to enhance its ability to serve customers, while also supporting investment in acquisitions and new product development to expand the Company’s addressable market. These initiatives coupled with Husky’s ongoing market leadership contributed to a substantial increase in its earnings.
“We thank OMERS and Berkshire for their long-term partnership and support of the Company’s goals over the last six and a half years. They have been great partners for management and excellent stewards of the Company. Their support has helped position Husky for future growth as the global leader and innovator in its segments,” commented John Galt, President & CEO of Husky.
Michael Graham, Head of North America for OMERS Private Equity said, “We are proud to have been involved with Husky, an iconic Canadian company known world-wide for its leading technology in plastics processing. Husky is led by an exceptional management team that John Galt has developed over the years. We are grateful for all their efforts which resulted in significant growth under our ownership.”
“We are fortunate to have partnered with the outstanding management team at Husky,” said Mike Ascione, a Managing Director at Berkshire Partners. “Husky is well-positioned for continued growth and success, and we are thankful for the opportunity to have worked with the Company and the team at OMERS.”
The transaction is expected to close in the second quarter of 2018. Goldman Sachs, Baird and CIBC Capital Markets acted as financial advisers to the Company; Weil, Gotshal & Manges and Torys acted as legal counsel.
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About Husky IMS International Ltd.
Husky is a leading global supplier of injection molding equipment and services to the plastics industry. The company has more than 40 service and sales offices, supporting customers in over 100 countries. Husky’s manufacturing facilities are located in Canada, the United States, Luxembourg, Austria, Switzerland, China, India and the Czech Republic.
About OMERS and OMERS Private Equity
Founded in 1962, OMERS is one of Canada’s largest defined benefit pension plans, with more than $85 billion in net assets, as at December 31, 2016. OMERS invests and administers pensions for more than 470,000 members through originating and managing a diversified portfolio of investments in public markets, private equity, infrastructure and real estate.
OMERS Private Equity, the private equity investment arm of OMERS, has $11.0 billion of capital invested as at December 31, 2016. With a team of 42 investment professionals based in London, New York and Toronto, OMERS Private Equity seeks to use its significant and differentiated capital base to partner with management teams of industry leading businesses. For more information, please visit www.omersprivatemarkets.com.
About Berkshire Partners
Berkshire Partners, a Boston-based investment firm, has raised nine private equity funds with more than $16 billion in aggregate capital and has made over 120 investments in primarily middle market companies since its founding in 1986. Berkshire has developed specific industry experience in several areas including communications, consumer products and retail, business services, industrials and healthcare. Berkshire has a strong history of partnering with management teams to grow the companies in which it invests with the goal of consistently achieving superior investment returns. Other investments in the industrials sector have included Advanced Drainage Systems, SRS Distribution and TransDigm. The firm is currently investing from Berkshire Fund IX, a $5.5 billion fund raised in 2016. The firm seeks to invest $50 million to $500 million of capital in each portfolio company. For additional information, visit www.berkshirepartners.com.
Photo courtesy of Husky Injection Molding Systems Ltd