TORONTO – Onex Corp. (TSX:OCX) is leading a $718-million deal to acquire a 4,000-employee German manufacturing company, the first European investment for the Toronto-based company’s flagship private equity fund.
KraussMaffei AG, a manufacturer of plastic and rubber processing equipment, is based in Munich, and operates key manufacturing facilities in Germany, Switzerland, Slovakia and China.
Onex Partners III will make an equity investment of US$340 million. Onex manages the fund on behalf of itself and other investors. The company’s own share of the equity investment will be about US$86 million.
The rest of the transaction, valued at €568 million, will be funded with debt financing.
For the year ended June 30, 2012, KraussMaffei generated approximately $1.26 billion in revenues. The transaction is expected to close by March 31, 2013 subject to regulatory approvals.
“Building on our recent success, we see good opportunities to further grow the company. I am very pleased to be partnering with Onex given its track record and experience in our industry,” Jan Siebert, the CEO of KraussMaffei said in a statement.
Onex managing director David Mansell said Onex looks forward to working with Siebert and his management team.
“KraussMaffei is a global leader in each of its three segments, with a decades-long reputation for technology and quality,” Mansell said.
Onex manages investments focused on private equity, real estate and credit securities. In total, the company manages about $14 billion, of which $9 billion is third-party capital.