Onex to sell Husky International business for $2.1 billion

Tue May 3, 2011 7:51am EDT

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(Reuters) - Investment company Onex Corp (OCX.TO) and its affiliates said they will sell their Husky International business to private equity firms Berkshire Partners and Omers Private Equity for $2.1 billion.

Onex Group, which bought Husky in 2007, said its portion of the net proceeds from the sale will be about $635 million.

Husky is one of the world's largest suppliers of injection molding equipment and services to the plastics industry, according to Onex website.

The Onex Group will receive total net proceeds of $1.8 billion on completion of the transaction.

Over the past year, there has been a flurry of secondary buyouts -- when private equity firms sell assets to rival buyout firms -- as firms are under pressure to invest billions of dollars raised in 2006 to 2008.

The deal is expected to close early in the third quarter.

Shares of Toronto-based Onex closed at C$35.83 on Monday on the Toronto Stock Exchange.

(Reporting by Bhaswati Mukhopadhyay; Editing by Gopakumar Warrier)

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