Onex completes US $4.3B sale USI to CDPQ and KKR

Onex Corporation (TSX: OCX) and Onex Partners III have closed the sale of USI Insurance Services to Caisse de dépôt et placement du Québec (CDPQ) and KKR & Co. L.P., and employees of USI for an enterprise value of $4.3 billion (all figures in US dollars).

The Onex Group acquired USI in December 2012 with an equity investment of $610 million, of which Onex’ share was $170 million. The Onex Group has received total proceeds of $2.1 billion, including a prior distribution of $181 million in 2015, resulting in a gross multiple of invested capital of 3.4 times and a 34% gross rate of return. Onex’ portion of the sale proceeds was $563 million, including carried interest of $65 million.

CDPQ and KKR investment is made through a CDPQ pool fund managed by KKR and funds from KKR’s balance sheet. The CDPQ/KKR partnership is designed to pursue attractive investment opportunities in high quality businesses with a longer duration and a lower risk profile in order to support strong management teams and facilitate long-term strategic business building.

With more than 4,400 professionals operating out of 140 local offices throughout the United States, USI delivers property and casualty, employee benefits, personal risk and retirement solutions. USI has become an industry leader by leveraging the USI ONE Advantage® and attracting best-in-class industry talent with a long history of deep and continuing investment in local communities.

photo credit: USI

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.