Onex Corp. (www.onex.com), one of Canada’s largest companies with global operations in the service, manufacturing and high technology industries, is buying Toronto-based Husky Injection Molding Systems Ltd. (www.husky.ca) for CAD$960 million CAD (US$966 million).
Onex said it offered to buy all of Husky for CAD$8.18 per share. Husky founder and chairman Robert Schad, who controls 44 percent of the stock with his wife, agreed to vote in favor of the purchase. Husky has been reviewing its options including a possible sale since March when the value of the company’s stock fell for the third quarter in a row. Husky posted losses in 2002 and earnings fell in 2004 and 2005 despite investments in new technology and expanding its distributor network.
Onex has $2.1 billion available for investments said Onex chief financial officer Ewout Heersink. The company partnered with Goldman Sachs Group, Inc. in March to buy Raytheon Co.’s business jet unit for CAD$3.8 billion. In August it partnered with Carlyle Group to buy Allison Transmission for $5.6 billion.
Onex has a record of getting concessions from employees in return for equity that has consistently resulted in making businesses more profitable than other investors though possible.
Husky will hold a shareholders’ meeting to consider the offer and if approved expects the sale to be completed by mid-December.