Onex Partners, the private equity division of Toronto-based conglomerate Onex Corporation, has agreed to buy Cosmetic Essence from Florida-based private equity shop Brockway Moran & Partners in a transaction valued at C$300 million ($250 million; €194 million).
According to a statement, Onex will invest C$135 million in equity for a 90 percent ownership interest, with senior management and certain institutions holding the remaining 10 percent.
Cosmetic Essence, based in New Jersey, is a provider of outsourced supply chain management services to the personal care products industry including formulating, manufacturing, filling, packaging and distribution services. The company manufactures products, such as fragrances, crèmes, lotions and colour cosmetics for a various branded manufacturers and major retailers. It has annual revenues of more than $250 million.
Boca Raton, Florida-based Brockway Moran had originally added Cosmetic Essence to its portfolio back in 2001 as part of a recapitalisation. According to a firm statement, the transaction will result in a return on investment of more than 5.5 times for selling shareholders.
Brockway Moran managing partner Michael E. Moran and Onex managing partner Mark Hilson took part in the deal. Cosmetic Essence was advised by Harris Williams, the investment bank.
The Cosmetic Essence deal represents Onex Partner’s second acquisition announced in less than two weeks. At the beginning of November, the firm announced the purchase of Center for Diagnostic Imaging (CDI) in a transaction worth C$225 million ($184 million; €144 million). Onex will invest approximately C$93 million in equity, giving it an 84 percent stake in the company.
Onex Partners is a $2.2 billion private equity fund established by Onex Corporation. Onex Partners provides capital for new Onex-sponsored acquisitions not related to Onex Corp.’s existing operating companies. Onex Corp. has committed $525 million to Onex Partners, making it a 25 percent limited partner.
Brockway Moran is a middle-market private equity firm that invests in companies valued up to $200 million. The firm currently manages more than $600 million in assets and has investors that include Goldman Sachs, Adams Street Partners, Wilshire Associates, Pathway Capital and Princeton University.