TORONTO (Reuters) – Private equity group Onex Corp said on Monday it will buy a 50 percent stake in U.S. cabinet maker RSI Home Products Inc for $318 million.
Onex said RSI founder and Chairman Ronald Simon will continue to own 50 percent of RSI, which makes kitchen and bathroom cabinets, along with other existing shareholders.
Toronto-based Onex, which has investments in industries as diverse as health care, cosmetics and movie theaters, said RSI is well positioned to take advantage of an eventual recovery in the home repair and remodeling industry.
Onex said the deal is subject to regulatory approvals and is expected to close in early October.
RSI, which employs more than 5,000 people in California, Kansas, North Carolina, Mexico, and China, had revenue of $480 million for the 12 months ended June 30.
The purchase will be made by Onex Partners, Onex’s large cap private equity fund. Onex Corp, a limited partner in the fund, will invest about $126 million of the total amount.
Shares of Onex, which have fallen about 25 percent in 2008, were down C$2.00, or 7 percent, at C$26.39 late on Monday morning on the Toronto Stock Exchange.
($1=$1.07 Canadian) (Reporting by Frank Pingue; Editing by Peter Galloway)