Onex Corp.'s recent healthcare industry transactions have helped steer the Canadian conglomerate into strong financial standing.
The company has announced that its second quarter revenues rose $1.3 billion to $5.9 billion, up 27 percent from $4.6 billion in the second quarter of 2006. Net earnings grew from $45 million in Q2 2006 to $157 million in Q2 2007.
In April 2007, Onex acquired Eastman Kodak Company's Health Group for roughly $2.55 billion. The resulting firm, Carestream Health, contributed significantly to the $33 billion in annual revenues generated by Onex's holdings.
"We have completed another two significant acquisitions with the April purchase of Carestream Health and most recently Allison Transmission," said Gerald W. Schwartz, president and CEO of Onex. "We believe that Onex can continue to generate strong value growth in its private equity activities and, combined with the benefits from the third-party capital, build significant value for our shareholders."
Onex also sold portions of its shares of interest in Skilled Healthcare Inc., a U.S.-based nursing home operator acquired by Onex in 2005 for $630 million. Skilled Healthcare completed an initial public offering in May for gross proceeds of nearly $308 million. Onex received more than $40 million in proceeds on the sale of the shares, in addition to $3.8 million in third-party capital profits.
The company's $57 billion total investment in Skilled Healthcare has returned nearly $95 billion in proceeds, including the value of its continuing ownership.