TORONTO, ONTARIO--(Marketwire - Sept. 4, 2012) -
All amounts in U.S. dollars unless otherwise stated
Onex Corporation ("Onex") (OCX.TO) today announced that it has agreed to acquire SGS International, Inc. ("SGS"), a global leader in design-to-print graphics services to the consumer products packaging industry, for $813 million.
Based in Louisville, Kentucky, SGS is a vertically-integrated provider of packaging graphics services to branded consumer products companies, retailers and the printers that service them. SGS provides critical services that ensure customers are able to obtain or produce consistent, high-quality packaging materials, often on short turnaround times. The company has over 2,400 employees spanning a network of 37 production facilities and at more than 100 customer locations across 14 countries. For the twelve months ended June 30, 2012, SGS generated approximately $390 million in revenues.
"We are excited about our partnership with Onex given its long-term track record and experience with industry-leading businesses," said Hank Baughman, President and Chief Executive Officer of SGS. "I look forward to working with Onex to execute our strategic plan and to continue to expand the business to better serve our customers."
"SGS is truly the global leader in its industry, evidenced by its strong and enduring relationships with the world's leading consumer goods companies, retailers and packaging converters," said David Mansell, an Onex Managing Director. "We're delighted to be partnering with Hank and his management team to build on the company's market leadership position through continued international growth and expansion into other complementary services."
Onex Partners III, Onex' $4.7 billion private equity fund, will make an equity investment of approximately $260 million, of which Onex' share is approximately $65 million as a Limited Partner in the Fund. SGS' senior management team will also make a significant equity investment. The transaction is anticipated to close in the fourth quarter subject to customary regulatory approvals.
Onex is one of North America's oldest and most successful private equity firms, committed to acquiring and building high-quality businesses in partnership with talented management teams. Onex manages investment platforms focused on private equity, real estate and credit securities. In total, the company manages approximately $14 billion, of which $9 billion is third-party capital. As well, Onex invests its own proprietary capital of approximately $5 billion directly and as a substantial limited partner in its Funds.
Onex' businesses have assets of $39 billion, generate annual revenues of $34 billion and employ approximately 235,000 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.
About SGS International
SGS International is a global leader in the digital imaging industry. SGS offers design-to-print graphics services to the international consumer products packaging industry primarily in North America, Europe and Asia. SGS provides a full spectrum of innovative digital solutions that streamline the capture, management, execution and distribution of graphics information. Brand development, creative design, prepress, image carriers and print support services are utilized in each of the three main printing processes: flexography, gravure and lithography. The company provides critical services that ensure customers are able to obtain or produce consistent, high-quality packaging materials often on short turnaround times. To learn more about SGS, please visit www.sgsintl.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.