OREANDA-NEWS. September 04, 2012.  Onex Corporation (“Onex”) (TSX: OCX) today announced that it has agreed to acquire SGS International, Inc. (“SGS”), a global leader in design-to-print graphics services to the consumer products packaging industry, for USD 813 million.

 Based in Louisville, Kentucky, SGS is a vertically-integrated provider of packaging graphics services to branded consumer products companies, retailers and the printers that service them. SGS provides critical services that ensure customers are able to obtain or produce consistent, high-quality packaging materials, often on short turnaround times. The company has over 2,400 employees spanning a network of 37 production facilities and at more than 100 customer locations across 14 countries. For the twelve months ended June 30, 2012, SGS generated approximately USD 390 million in revenues.

 “We are excited about our partnership with Onex given its long-term track record and experience with industry-leading businesses,” said Hank Baughman, President and Chief Executive Officer of SGS. “I look forward to working with Onex to execute our strategic plan and to continue to expand the business to better serve our customers.”

 “SGS is truly the global leader in its industry, evidenced by its strong and enduring relationships with the world’s leading consumer goods companies, retailers and packaging converters,” said David Mansell, an Onex Managing Director. “We’re delighted to be partnering with Hank and his management team to build on the company’s market leadership position through continued international growth and expansion into other complementary services.”

 Onex Partners III, Onex’ USD 4.7 billion private equity fund, will make an equity investment of approximately USD 260 million, of which Onex’ share is approximately USD 65 million as a Limited Partner in the Fund. SGS’ senior management team will also make a significant equity investment. The transaction is anticipated to close in the fourth quarter subject to customary regulatory approvals.