Toronto-listed Onex Corporation has agreed to buy SIG Combibloc Group (SIG), a Swiss-based provider of sterilised carton packaging for up to €3.75 billion.
Onex will initially pay €3.575 billion, with an additional €175 million to be paid if SIG hits certain financial performance metrics in 2015 and 2016, according to a statement.
The total equity investment in the deal is approximately €1.01 billion, which will be made up by Onex Partners, the main private equity platform within the Canadian asset management firm, some limited partners as co-investors and SIG’s management team. Onex will use capital from its Onex Partners IV, a $5.15 billion vehicle which it closed above its $4.5 billion target in May 2013, to pay its share.
The transaction, which is subject to customary and regulatory approvals, is expected to close in the first quarter of 2015.
SIG is the second largest provider of sterilised carton packaging globally. The company operates seven production facilities globally, based out of Europe, South America and Asia Pacific. SIG, which has 5,200 employees, has a mix of multinational and regional customers in more than 40 countries globally.
“SIG’s management team has successfully proven its ability to enter and grow in new markets, while maintaining its standard of excellence in existing markets,” Nigel Wright, a managing director in Onex’ London office, said in the statement.
Onex, which has offices in Toronto, New York and London, has approximately $20 billion of assets under management. Since inception, the firm has built more than 75 businesses, completing approximately 465 acquisitions with a total value of approximately $51 billion.