Onex Corp. said Sunday that it agreed to sell KraussMaffei Group to China National Chemical Corp. for 925 million euros (US$1 billion). KraussMaffei supplies machinery and systems for producing and processing plastics and rubber. Onex invested 276 million euros in KraussMaffei Group in December 2012. Once the deal closes, Onex will receive about 670 million euros in proceeds; its portion will be 180 million euros, including 12 million euros in carried interest.
TORONTO, ONTARIO–(Marketwired – Jan. 10, 2016) –
All amounts in U.S. dollars unless otherwise stated.
Onex Corporation (“Onex”) (TSX:OCX) and its affiliates (the “Onex Group”) today announced they have agreed to sell KraussMaffei Group to China National Chemical Corporation (“ChemChina”) for a cash enterprise value of EUR925 million. The transaction is expected to close in the first half of 2016 subject to customary closing conditions.
The Onex Group made a EUR276 million investment in KraussMaffei Group in December 2012. Upon completion of the transaction, the Onex Group will receive proceeds of approximately EUR670 million. Onex’ portion of the proceeds will be approximately EUR180 million, including carried interest of EUR12 million.
“Over the past several years we’ve worked closely with KraussMaffei Group’s management team to improve the performance of the company, further strengthening its leadership position in the global plastic and rubber processing industries,” said David Mansell, a Managing Director of Onex. “We’re proud KraussMaffei Group was our first European-headquartered company since opening our London office in 2012. We’d like to thank all of KraussMaffei Group’s employees and management for their dedication and hard work.”
“We are grateful for Onex’ support of KraussMaffei Group, which included significant investments in key geographic regions and new product developments allowing us to achieve strong operating performance and has set the foundation for further growth,” commented Frank Stieler, CEO of KraussMaffei Group.
Onex is one of the oldest and most successful private equity firms. Through its Onex Partners and ONCAP private equity funds, Onex acquires and builds high-quality businesses in partnership with talented management teams. At Onex Credit, Onex manages and invests in leveraged loans, collateralized loan obligations and other credit securities. The Company has approximately $22 billion of assets under management, including $6 billion of Onex’ proprietary capital, in private equity and credit securities. With offices in Toronto, New York and London, Onex invests its capital through its two investing platforms and is the largest limited partner in each of its private equity funds.
Onex’ businesses have assets of $36 billion, generate annual revenues of $24 billion and employ approximately 146,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website atwww.onex.com. The Company’s security filings can also be accessed at www.sedar.com.
This news release may contain forward-looking statements that are based on management’s current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.