Onex closes US $1.32B sale of BrightSpring Health Services to KKR

CPE Media News (3/5/2019) – Onex Corporation (TSX: ONEX) and its affiliates have completed the sale of BrightSpring Health Services to KKR for US $1.32 billion. An affiliate of Walgreens Boots Alliance, Inc. joined KKR as a minority investor.

BrightSpring Health Services is a leading provider of residential, training, educational and support services for people with disabilities and special needs in the United States.

As part of the transaction, BrightSpring has merged with PharMerica Corporation to form a leading provider of both home and community-based health and pharmacy services for high-need and medically complex populations.

In June 2004, Onex Partners I made an initial minority investment in BrightSpring (formerly ResCare) and in November 2010, Onex Partners III invested additional capital to acquire a majority stake in a take-private transaction. In total, the Onex Group invested $204 million and received total proceeds of approximately $1.0 billion, including prior distributions of $218 million.

As a limited partner in the two funds, Onex’ portion of the sale proceeds was approximately $190 million, including $39 million of carried interest, from Onex’ portion of $41 million investment. This results in a blended gross multiple of invested capital of 5.7 times and a 17% gross rate of return on Onex’ investment.

photo credit: BrightSpring Health Services

News Release

– Onex Completes Sale of BrightSpring Health Services –

Toronto, March 5, 2019 – Onex Corporation (“Onex”) (TSX: ONEX) and its affiliates (the “Onex Group”) today announced they have completed the sale of BrightSpring Health Services (“BrightSpring”) to affiliates of KKR. BrightSpring is a leading provider of diversified home and community-based health services to complex, high-cost populations.

In June 2004, Onex Partners I made an initial minority investment in BrightSpring (formerly ResCare) and in November 2010, Onex Partners III invested additional capital to acquire a majority stake in a take-private transaction. In total, the Onex Group invested $204 million, of which Onex’ portion was $41 million. The Onex Group has received total proceeds of approximately $1.0 billion, including prior distributions of $218 million. Onex’ portion of the sale proceeds was approximately $190 million, including $39 million of carried interest. This results in a blended gross multiple of invested capital of 5.7 times and a 17% gross rate of return on Onex’ investment.

About Onex

Onex is one of the oldest and most successful private equity firms. Through its Onex Partners and ONCAP private equity funds, Onex acquires and builds high-quality businesses in partnership with talented management teams. At Onex Credit, Onex manages and invests in leveraged loans, collateralized loan obligations and other credit securities. Onex has $31 billion of assets under management, including $6.4 billion of Onex proprietary capital, in private equity and credit securities. With offices in Toronto, New York, New Jersey and London, Onex and the team are collectively the largest investors across Onex’ platforms.

Onex’ businesses have assets of $51 billion, generate annual revenues of $32 billion and employ approximately 217,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol ONEX. For more information on Onex, visit its website at www.onex.com. Onex’ security filings can also be accessed at www.sedar.com.

For further information:
Emilie Blouin
Director, Investor Relations
Tel: +1 416.362.7711

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