TORONTO, June 16 /CNW/ -- Onex Corporation (Toronto: OCX.SV)
announced today it has completed the previously announced acquisition of the
Wichita/Tulsa Division of Boeing Commercial Airplanes in a transaction valued
at approximately $1.5 billion, including cash of approximately $1.1 billion
and the assumption of certain liabilities.
The purchased operations include Boeing's commercial airplane
manufacturing facilities in Wichita, Kan., and Tulsa and McAlester, Okla. The
new business has entered into long-term agreements to supply Boeing fuselage
sections, struts and nacelles, and wing elements on Boeing's 737, 747, 767,
777, and 787 platforms, making it the largest Tier 1 aerostructures
manufacturer in the world. The new company also will compete for business from
other aircraft OEMs in the commercial airliner, business jet, general
aviation, and defence sectors.
"Starting today we can market our abilities to the entire aerospace
industry," said Jeff Turner, CEO of the new company. "It's an exciting day for
our team. We believe that our facilities and skills are the best in the world,
and we are eager to have the opportunity, working closely with Onex, to
aggressively pursue new business outside the Boeing supply chain."
"We are extremely pleased with the acquisition," said Nigel Wright, an
Onex managing director. "We are at a good point in the commercial aircraft
cycle, we have a great partnership with Boeing, we are initiating
relationships with other manufacturers, and we have employees who are raring
to go."
Onex Managing Director Seth Mersky added, "We have great confidence in
Jeff Turner and the thousands of men and women who have joined the new team.
We are excited and looking forward to a future of growth both in Kansas and
Oklahoma."
The equity investment of $470 million will be made through Onex Partners
and a number of its limited partners, including Onex Corporation itself.
The new company's roots go back to the Stearman Aircraft Company, which
began operations in the 1920s. It now operates from approximately 12 million
square feet of facilities located in Wichita, Kan., and Tulsa and McAlester,
Okla. The civil aerostructures market is currently estimated to be about
$15 billion in annual value.
Onex Corporation is a diversified company with annual consolidated
revenues of approximately $18 billion and consolidated assets of approximately
$13 billion. Onex is one of Canada's largest companies with global operations
in service, manufacturing, and technology industries. Its operating companies
include Celestica Inc., Magellan Health Services, Inc., ClientLogic
Corporation, Cineplex Galaxy LP, J.L. French Automotive Castings, Inc., Res-
Care, Inc., Emergency Medical Services Corporation, Cosmetic Essence, Inc.,
Center for Diagnostic Imaging, Inc., and Radian Communication Services
Corporation. Onex shares trade on the Toronto Stock Exchange under the stock
symbol OCX.SV.
For more information on Onex Corporation, visit its Web site at
http://www.onex.com .
Onex Corporation's security filings also can be accessed at
http://www.sedar.com .
All amounts in Canadian dollars unless otherwise stated
This news release may contain forward-looking statements that are based on
management's current expectations and are subject to known and unknown
uncertainties and risks, which could cause actual results to differ materially
from those contemplated or implied by such forward-looking statements. Onex is
under no obligation to update any forward-looking statements contained herein
should material facts change due to new information, future events, or
otherwise.
