TORONTO, ONTARIO — (Marketwired) — 06/10/13 — All amounts in U.S. dollars unless otherwise stated
Onex Corporation (“Onex”) (TSX: OCX) and its affiliates (the “Onex Group”) announced today that Carestream Health, Inc. (“Carestream”) raised approximately $2.4 billion of debt to fund a $725 million distribution to shareholders, refinance existing debt facilities and pay fees and expenses associated with this recapitalization.
The Onex Group will receive a distribution of approximately $673 million, of which Onex- share will be approximately $295 million, including carried interest of $48 million. Combined with prior distributions, the Onex group will have received approximately $1.2 billion, representing a 2.6x gross multiple of invested capital and a 22% cash-on-cash rate of return, and will continue to own approximately 91% of Carestream.
The Onex Group acquired Carestream in 2007 in a corporate carve-out from its parent, the Eastman Kodak Company. Over the past six years, Onex has worked closely with management on various initiatives that have resulted in a stronger and faster-growing digital platform and increased cash flow generation from its film operations. In 2013, Carestream is expected to generate $457 million of EBITDA and approximately $190 million in free cash flow pro forma for the recapitalized balance sheet.
“This is an excellent outcome for Onex and Carestream,” said Robert Le Blanc, a Senior Managing Director at Onex. “Carestream is truly an outstanding company led by a terrific CEO, Kevin Hobert, and deep and talented management team. We look forward to our continued partnership to further build on Carestream-s success.”
About Onex
With offices in Toronto, New York and London, Onex is one of the oldest and most successful private equity firms. Onex acquires and builds high-quality businesses in partnership with talented management teams. The Company has approximately $16 billion of assets under management, including $5 billion of proprietary capital, in private equity, credit securities and real estate. Onex invests its proprietary capital directly and as a substantial limited partner in its Funds.
Onex- businesses have assets of $44 billion, generate annual revenues of $37 billion and employ approximately 243,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at . The Company-s security filings can also be accessed at .
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.
Contacts:
Onex Corporation
Emma Thompson
Vice President, Investor Relations
416.362.7711