Onex Corp eyes Warranty Group exit


exit sign_sqCanadian private equity firm Onex Corp is reportedly set to exit warranty contracts provider The Warranty Group for more than $1bn.

Onex has hired Goldman Sachs, Morgan Stanley and Citigroup to find a buyer for the company, said Reuters, citing two people familiar with the matter.

The firm acquired The Warranty Group in 2006 in a $710m deal that included $510m of equity.

Last month Onex made an overall two-times cash multiple by selling its remaining 60 per cent stake in steel mill services business TMS International for $410m.

Earlier in 2013 it was reported that Onex was looking to raise $4.5bn for its next private equity fund.

The firm tapped investors for $4.7bn for its Onex Partners III vehicle in 2009, and was said to plan to stick to that fund’s strategy of large-cap North American investments.

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