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Onex to acquire 50 per cent of RSI Home Products15/09/2008. Source: AltAssets. 
 Onex Corporation has agreed to acquire a 50 per cent interest in RSI Home Products, a US manufacturer of cabinetry for the residential marketplace, for US$318m. The remaining 50 per cent of the company will continue to be held by Ronald Simon, its founder and chairman, and other existing shareholders.
RSI makes kitchen, bath and home organisation products for sale in the US and Canada through home centres, kitchen and bath dealers and other distributors. It employs 5,000 people in California, Kansas, North Carolina, Mexico and China.
Onex managing director Anthony Munk said, 'We believe that RSI's manufacturing expertise, product innovation and customer service capabilities position the company extremely well to take advantage of the eventual recovery in the repair and remodelling industry.'
The investment will be made from Onex Partners, Onex's large-cap private equity fund, with Onex Corporation, as a limited partner in that fund, investing approximately US$126m of that amount.
The investment will take the form of a convertible preferred security representing a 50 per cent economic and voting interest in RSI, subject to a minimum preferred return of ten per cent to Onex upon realisation, according to a statement.
Onex makes private equity investments through the Onex Partners and ONCAP families of funds.
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