Onex to Acquire Gluskin Sheff

March 29, 2019

On March 22, 2019, Onex Corporation announced an agreement to acquire Gluskin Sheff + Associates Inc.

Under the terms of the agreement, Onex Corporation (“Onex”) will acquire Gluskin Sheff + Associates Inc. (“Gluskin”) for C$14.25 per share, for a total in cash of C$445 million. Members of senior management of Gluskin have agreed to roll-over approximately 7% of the Gluskin shares outstanding into Onex subordinate voting shares. The transaction will require the approval of 66⅔% of the votes at a special meeting of Gluskin shareholders along with the approval of a “majority of the minority” votes cast by those who are not rolling-over their shares. The agreement contains non-solicitation provisions that allow for Gluskin to consider and accept superior proposals and gives Onex the right to match. If the transaction does not close under certain circumstances including superior proposals, Gluskin will pay Onex a termination fee of C$13.3 million. The transaction is expected to close in the first half of 2019 and is subject to shareholder, court, and required regulatory approvals along with customary closing conditions. Further terms of the deals were not disclosed.

Onex is a private equity firm that specializes in acquisitions and business-building. It also manages and invests in leveraged loans, collateralized loans along with other credit securities. Onex has $31 billion of assets under management and $6.4 billion in proprietary capital.

Gluskin, founded in 1984, is a Canadian wealth management firm that serves high net worth individuals and institutions.


Categories

Private Equity M&A, Transactions