Onex Corporation has agreed to acquire SIG Combibloc Group, which provides packaging for beverage and food producers, for up to 3.75 billion euros ($4.6 billion). The deal is expected to close in the first quarter of 2015, with about 3.5 billion euros ($4.4 billion) paid at the closing of the deal, and an additional amount of up to 175 million euros ($217 million) payable based on the company’s financial performance in 2015 and 2016.
Onex Corporation (“Onex”) (TSX:OCX) today announced it has agreed to acquire SIG Combibloc Group AG (“SIG”) for up to EUR3.75 billion ($4.66 billion). EUR3.575 billion ($4.44 billion) will be paid at the closing of the transaction, with an additional amount of up to EUR175 million ($217 million) payable based on the financial performance of SIG in 2015 and 2016.
The transaction is anticipated to close in the first quarter of 2015, subject to customary conditions and regulatory approvals.
SIG is the second largest provider of aseptic carton packaging globally. Based in Switzerland, SIG provides beverage and food producers with a comprehensive product portfolio of aseptic carton sleeves and closures, as well as the filling machines that producers and packagers use with these sleeves. The company operates seven production facilities globally, based out of Europe, South America and Asia Pacific. SIG has 5,200 employees serving a mix of leading multinational and regional customers in more than 40 countries worldwide.
“SIG’s management team has successfully proven its ability to enter and grow in new markets, while maintaining its standard of excellence in existing markets,” said Nigel Wright, a Managing Director in Onex’ London office. “We look forward to partnering with Rolf Stangl and his team to further build upon SIG’s impressive track record and continue its growth.”
“Our commitment to providing customers with a premier aseptic carton packaging system has made SIG a leader within our industry,” said Mr. Stangl, CEO of SIG. “We are excited about our next phase of growth in partnering with Onex.”
The equity investment of approximately $1,250 million will be made by Onex Partners IV, certain limited partners as co-investors, including Onex, and SIG’s management team.
With offices in Toronto, New York and London, 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 $20 billion of assets under management, including $5.9 billion of Onex capital, in private equity and credit securities. Onex invests its capital directly and as the largest limited partner in each of its Funds.
Onex’ businesses have assets of $29 billion, generate annual revenues of $22 billion and employ approximately 200,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at www.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.