Onex Reports First-Quarter 2011 Results

TORONTO, ONTARIO--(Marketwire - May 11, 2011) -

All amounts in U.S. dollars unless otherwise stated

Onex Corporation ("Onex") (TSX:OCX) today announced its consolidated financial results for the first quarter ended March 31, 2011 and an update on matters following quarter-end.

Highlights

• Onex and its affiliates (the "Onex Group") agreed to sell Husky International for $2.1 billion, which, will result in a multiple of invested capital of approximately 2.9 times and a 36% rate of return. Onex' portion of the net proceeds from this sale would be approximately $635 million, including carried interest.

• The Onex Group agreed to invest $675 million and acquire a significant minority interest in JELD-WEN, the world's largest residential door and window maker. Onex' share of the investment is approximately $120 million.

• The Onex Group agreed to sell Emergency Medical Services Corporation for $64 per share. Onex' share of the net proceeds will be $339 million including carried interest. This transaction is expected to close at the end of May.

• The Onex Group sold approximately 10 million shares in Spirit AeroSystems for total proceeds of $245 million, resulting in a multiple of over 7 times cost. Onex received net proceeds of approximately $74 million, including carried interest.

• During the first quarter, Carestream paid a distribution of $197 million to the Onex Group, of which Onex' share was $78 million.

• Including realizations and distributions, the value of Onex' interest in Onex Partners' and ONCAP's private investments grew by 5% and 3%, respectively, during the first quarter.

• At March 31, Onex' unrealized carried interest was $164 million based on the public companies held at market value and on the quarter-end fair values of the private companies in the Onex Partners Funds.

• At April 30, Onex had no debt at the parent company and over $800 million of cash and near-cash investments.

Onex is an investor and asset manager generating value from (i) growth in the Company's $4.6 billion of proprietary capital; (ii) management fees based on the $9.0 billion of third-party capital committed to its Funds, and (iii) a carried interest based on the performance of those Funds.

Investing

"Starting mid-way though 2010, we saw continuing improvement across most of our operating companies, which resulted in meaningful year-over-year increases in mark-to-market values," said Gerald W. Schwartz, Chairman and Chief Executive Officer of Onex. "This momentum has continued into 2011, with many of our companies generating both earnings growth and strong free cash flow."

In April, TMS International completed an initial public offering with a portion of proceeds being used to fund the company's continued growth as well as to repay notes held by Onex and management. Including prior capital returns and the IPO value of the retained investment, the multiple on invested capital is about 1.6 times. We will consider additional offerings for certain of our other businesses. Fortunately, we can wait for the appropriate time given the strength of our operating companies' balance sheets.

In May, the Onex Group agreed to sell Husky International for $2.1 billion. Upon completion of the transaction, the Onex Group will have received total net proceeds of $1.8 billion, including a prior $98 million distribution, which will result in a multiple of invested capital of approximately 2.9 times and a 36% rate of return. Onex' portion of the net proceeds from this sale would be approximately $635 million, including carried interest. The transaction is expected to close early in the third quarter and is subject to customary closing conditions.

Onex Partners III, Onex' flagship private equity fund, agreed to invest $675 million and acquire a significant minority interest in JELD-WEN, the world's largest residential door and window maker. The transaction is anticipated to close in the second quarter subject to customary regulatory approvals and completion of the associated debt financing.

"The acquisition market continues to improve as does our investment pipeline activity," said Mr. Schwartz. "We remain optimistic that the recent increase in corporate mergers and acquisitions is a precursor to dispositions into the private equity markets. In prior financial cycles, this has been a leading indicator as chief executives look to sell businesses that they no longer consider core to their merged operations. Historically, corporate dispositions and carve-outs have produced some of our best investments."

Although it is difficult to predict investment pace, Onex is well-positioned to respond to the right opportunities. The Company continues to be in excellent financial condition, with over $800 million in cash and near-cash investments at the end of April, no debt at the parent company and approximately $3.0 billion of uncalled committed capital for acquisitions through the Onex Partners and ONCAP Funds.

Over 27 years, Onex has established a strong culture that is based on long-held investing principles. The Company believes that long-term value is best created by focusing on enhancing the productivity and profitability of its businesses. By transforming under-valued businesses into industry leaders, Onex has produced impressive returns over its history. As of March 31, 2011, Onex has generated a 27-year gross IRR of 29% and an average multiple of 3.6 times invested capital from its private equity investing.

Onex continues to believe that its success is a result of the strong alignment of interests between Onex shareholders, our limited partners and the management team. At March 31, 2011, Onex' management team had almost $1.5 billion invested in Onex shares and in its operating companies.

Asset Management

Onex earns recurring asset management fees and carried interest on $9.0 billion of third-party capital. The current annualized rate of total management fees received is approximately $97 million, which typically offsets Onex' operating costs.

At March 31, 2011, there was approximately $62 million of unrealized carried interest allocable to Onex based on the public companies held at market value in Onex Partners I. In addition, Onex has the potential to earn a further $102 million of carried interest on its private businesses in the Onex Partners Funds based on the fair values determined at March 31. Ultimately, the carried interest received will be determined upon the final returns of each Fund.

In February, ONCAP began fundraising for ONCAP III, with a fund size of up to C$800 million in capital commitments. As with each of our Funds, Onex will be the largest limited partner in ONCAP III, representing 35% of the capital commitments to the Fund including commitments from Onex management.

Consolidated First-Quarter Results

Onex' quarterly and full-year consolidated financial results do not follow any specific trends due to acquisitions and dispositions of businesses, changes in the value of our public-traded and privately-held operating companies and varying business cycles at its operating companies.

Effective January 1, 2011, Onex' financial statements are being prepared in accordance with International Financial Reporting Standards and are reported in U.S. dollars. Please see the Q1 Management's Discussion and Analysis and Notes to Interim Consolidated Financial Statements for a review of the significant accounting policies under IFRS that impact Onex' financial statements.

On a consolidated basis for the first quarter, revenues increased 22% to $6.0 billion compared to the same period of the prior year. Onex reported a consolidated net loss of $204 million compared to a net loss of $8 million in the first quarter of 2010. Cash flow from operations was $307 million compared to $112 million in 2010.

The Company paid a first-quarter dividend of C$0.0275 per Subordinate Voting Share on April 29, 2011 to shareholders of record on April 8, 2011.

Attached are the Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the quarter ended March 31, 2011 and 2010. The complete financial statements, including Management's Discussion and Analysis of the results, are posted on Onex' website, www.onex.com, and are also available on SEDAR at www.sedar.com. Also attached is the "How We Are Invested" schedule, which details Onex' $4.6 billion of proprietary capital and provides private company performance information.

Webcast

Onex management will host a conference call to review the Company's first-quarter 2011 results at 4:30 p.m. ET today. A live webcast of this conference call will be available in listen-only mode on its website, www.onex.com.

About Onex

Onex is one of North America's oldest and most successful investment firms committed to acquiring and building high-quality businesses in partnership with talented management teams. Onex manages investment platforms focused on private equity, real estate and credit securities. In total, the company manages approximately $15 billion, of which $10 billion is third-party capital. As well, Onex invests its own capital directly and as a substantial limited partner in its Funds.

Onex' businesses generate annual revenues of $31 billion, have assets of $41 billion and employ more than 238,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at www.onex.com. The Company's security filings can also be accessed at www.sedar.com.

This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.