Onex sells Husky to Berkshire, Canadian pension fund

05/03/2011

For the second time in less than four years, Husky Injection Molding Systems has been sold, once again shifting ownership after the company spent more than half a century under its former owner and founder, Robert Schad. The maker of injection molding machines, hot runners, and molds has been sold by Onex Corp., which purchased it in a stock buyout from Schad in December 2007, to Boston-based private equity firm Berkshire Partners and Canadian pension fund OMERS Private Equity for $2.1 billion.

A OMERS spokesperson told PlasticsToday that in terms of the ownership split between it and Berkshire, both companies would invest equal amounts in Husky. A Husky spokesperson said that at this time, no changes to Husky's management or overall personnel have been announced. Company employees were informed of the move on May 3 via a message from current president and CEO, John Galt.

Onex said it acquired Husky for an equity investment of approximately $622 million in 2007, while other reports pegged the number at $966 million. Once the deal with Berkshire and OMERS is complete, the Canadian private equity firm says it will bank net proceeds of $1.8 billion on its investment in Husky, including a prior $98 million distribution. The end result will be a multiple of invested capital of approximately 2.9 times and a 36% rate of return. Onex says its portion of the net proceeds from this sale would be approximately $635 million, including carried interest....
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