Onex acquires majority stake of WireCo
7 July 2016Onex Corporation has announced it is to acquire a majority stake in WireCo WorldGroup in a recapitalization transaction. WireCo is a leading global manufacturer of mission-critical steel wire rope, synthetic rope, specialty wire and engineered products. Funds managed by Paine & Partners, LLC, will retain a minority interest alongside WireCo management. The transaction is expected to close later this year subject to customary conditions and regulatory approvals.
WireCo offers products which can be used in several applications such as industrial, onshore and offshore oil and gas, mining, fishing and maritime end-markets. The company operates 24 manufacturing facilities in eight countries and employs approximately 4,000 people.
"WireCo is a trusted supplier of highly engineered, mission-critical products across a diverse range of end-markets," said Kosty Gilis, a managing director with Onex.
Manish Srivastava, a managing director at Onex added, "WireCo has an exceptional management team with a proven ability to successfully execute operational efficiency initiatives while maintaining strong customer relations irrespective of market conditions."
Onex Partners IV, Onex' $5.7bn private equity fund, will make an equity investment of approximately £260m, of which Onex' share is approximately £75m as a limited partner in the fund.
