TORONTO - Onex Corp. (TSX:OCX) is selling its 60 per cent stake in TMS International Corp. (NYSE:TMS) for US$410 million as part of a deal for the company valued at US$1-billion including refinanced third-party debt.
The private equity investment firm said Monday that TMS is being acquired by an affiliate of the Pritzker Organization LLC.
The Pritzker family, one of America's wealthiest, operates a global industrial conglomerate and founded the Hyatt chain of hotels.
TMS stockholders will get $17.50 in cash for each share of their TMS class A and class B common stock. The price represents a 12 per cent premium over the company's Friday closing stock price.
Onex and Onex Partners II, one of its private equity investment funds, together hold 23.4 million TMX shares.
Onex's portion of these proceeds would be $172 million, including carried interest of $10 million, it said.
Pittsburgh-based TMS provides outsourced industrial services to steel mills. It operates 81 customer sites in 12 countries, along with 36 brokerage offices from which it buys and sells raw materials.
The Onex Group has invested $249 million in the company since 2007. Following the sale, the Onex Group will have received total proceeds of $504 million, including proceeds from the company's earlier initial public offering and prior distributions.
"TMS' strong relationships with leading global steel producers and its relentless focus on delivering exceptional value for its customers resulted in significant growth for the business, particularly internationally, despite challenging market conditions," Onex managing director Tim Duncanson said.
Onex manages approximately US$16 billion in private equity assets, credit securities and real estate.
— With files from The Associated Press
© Copyright 2013