Major Canadian private equity firm Onex Corp. is planning an initial public offering for Husky Injection Molding Systems Ltd., according to a report in the Toronto Globe & Mail.
Onex plans to sell its stake in the Bolton, Ontario-based maker of injection presses, robots, PET preform molds and hot runners in the next few months, potentially raising US$1.3 billion, according to the report. Onex spent about US$1 billion to buy Husky in late 2007 from Husky founder Robert Schad, and his wife, Elizabeth, and other shareholders.
The Globe & Mail story quotes executives close to Toronto-based Onex, who are not named.
When contacted by Plastics News, Anthony Munk, an Onex managing director on Husky's board, had no comment.
Husky issued a statement, saying that Onex's plans with respect to our ownership are their own and we cannot comment on rumors or speculation. Since buying Husky, Onex has demonstrated confidence in our business, management team, strategic plan and potential for future growth, the statement said.
Husky was publicly traded for a decade before Onex bought the firm in 2007, although Robert and Elizabeth Schad owned or controlled about 44.1 percent of the shares. Financial analysts have speculated that Onex eventually would cash in on the investment through an IPO.
The Globe & Mail story quoted from a recent report by financial anayst Peter Sklar of Toronto-based BMO Nesbitt Burns, who speculated on Husky's valuation.
We believe Husky should be attributed a multiple greater than some of the comparable companies due to its position as the global market leader for its products, Sklar said.
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