Onex Corp., Canada’s largest buyout firm, agreed to buy York Risk Services Group Inc. from ABRY Partners LLC in a deal valued at $1.33 billion, boosting its insurance business.
York Risk Services provides risk management, insurance- claims management, and managed care services. The deal is expected to be completed by the end of September, Onex said in a statement today.
Onex is looking forward to continuing New Jersey-based York’s “impressive track record of growth both organically and through strategic acquisitions,” Robert Le Blanc, a senior managing director at Onex, said in the statement.
York Services is the first major acquisition for Onex in 2014, according to data compiled by Bloomberg. Gerry Schwartz, chief executive officer of Toronto-based Onex, said in June valuations were high, making good acquisitions scarce.
Onex has been taking advantage of the seller’s market by divesting $6.9 billion in assets including the sale of Gates Corp. to Blackstone Group LP for $5.4 billion in April, which it sold with its partner Canada Pension Plan Investment Board.
The equity investment in York Services of approximately $560 million will be made by Onex Partners III, certain limited partners as co-investors, including Onex, and York’s management team, Onex said.
ABRY Partners acquired York Risk Services in 2010, according to data compiled by Bloomberg, and has been exploring its sale since earlier this year.
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