Onex Corp. to purchase SGS International for $813 million
Investment firm purchases a global leader in graphics services for the consumer packaging industry.
Toronto—Onex Corporation, a Toronto-based private equity investment firm and holding company has announced it has an agreement in place to purchase SGS International, Inc., a Louisville, KY-headquartered global leader in design-to-print graphics services to the consumer products packaging industry, for $813 million.
SGS is an international is a global leader in the digital imaging industry offering design-to-print graphics services to the international consumer products packaging industry primarily in North America, Europe and Asia. Known as one of the largest flexographic plate makers in the world, SGS annually produces over 3-million-square-feet of flexo plates while also a leading supplier of gravure cylinders, delivering over 80,000 yearly.
SGS has over 2,400 employees at 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,” says SGS president and chief executive officer Hank Baughman. “I look forward to working with Onex to execute our strategic plan and to continue to expand the business to better serve our customers.”
Onex managing director David Mansell adds: “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.
“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.
For more information about SGS, visit www.sgsintl.com.