With sale of stock, Onex reaps profit from Spirit

Canadian Onex Group’s $950 million investment in Spirit AeroSystems has paid off for the firm and its partners.

Onex, an investment firm based in Toronto, on Thursday announced the sale of 8.4 million shares of common stock in Spirit. With the sale, it will no longer own Spirit stock.

The Onex Group, which includes Onex Corp. and its limited partners, bought Boeing’s commercial aircraft division in Wichita in June 2005 for about $950 million, which included $375 million of equity.

Over the nine-year investment period, Onex has received aggregate proceeds of about $3.2 billion — resulting in a multiple of capital invested of about 8.5 times and a return on investment of 201 percent per annum, Onex said.

Excluding its partners, Onex Corp.’s share of the proceeds totals about $975 million, which includes capital interest of $118 million, the firm said. It originally invested $108 million in Spirit.

Onex is an investment firm that acquires and builds businesses.

It invests its capital directly and is the largest limited partner in each of its funds.

“Onex’ relationship with Spirit dates back nearly a decade, beginning with its carve-out from Boeing in 2005, its establishment as one of the world’s largest non-OEM designers and manufacturers of aerostructures, and its continued growth as an independent and publicly listed company,” Seth Mersky, a senior managing director of Onex, said in a statement. “Spirit’s leadership, employees, and Board of Directors have been wonderful partners and friends. Without their efforts and support, Spirit would not have become the thriving business it is today.”

As of March 31, Onex’s businesses had assets of $45 billion, generated annual revenue of $35 billion and employed about 231,000 people worldwide.

Onex shares trade on the Toronto Stock Exchange.

Spirit AeroSystems announced the pricing of the secondary offering of Spirit shares held by Onex and its affiliates and former and current managers.

Together, the offering totals 8.56 million of Spirit common stock at a public offering price of $35.90 per share.

This story was originally published August 8, 2014 at 7:00 AM with the headline "With sale of stock, Onex reaps profit from Spirit."