Berkshire Partners is in talks to buy Husky Injection Molding Systems Ltd., according to a Reuters report.
Boston-based private equity firm Berkshire could be involved in a deal worth up to $2 billion, the report said. Diversified conglomerate Onex Corp. of Toronto bought Husky for about $1 billion in 2007.
Late last year media reports suggested Onex was looking for a buyer for Husky or to conduct an initial public offering of the Bolton, Ontario-based equipment maker. At the time, Onex had hired Goldman Sachs Group Inc. and JPMorgan Chase & Co. as it considered its next move.
Husky and JPMorgan spokeswomen said they could not comment on the Reuters report. Spokespersons for Onex and Berkshire Partners did not respond to requests for comment.
Husky is a major producer of injection molding equipment and molds. Its products are widely used to make bottles, closures, containers, medical products and electronic components. It logged sales of $1.1 billion for the year ended Sept. 30. For the period, its earnings before interest, taxes, depreciation and amortization were $197 million.
Berkshire has raised $6.5 billion of private equity capital since 1984 in seven investment funds, the Reuters report said. Berkshire's website shows no plastics firms in its portfolio. Its previous plastics investments that have since been sold included a stake in pipe producer Advanced Drainage Systems Inc., a position in carbon-fiber materials producers Hexcel Corp., an interest in plastic plates and bowls producer and marketer Amscan Holdings Inc., and a holding in plastic cutlery producer Holmes Group Inc.
Reuters said Bain Capital LLC and several other private equity firms also considered Husky, but dropped out of negotiations.