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Onex to acquire Gluskin Sheff

Onex Corporation (Onex) is to acquire Gluskin Sheff + Associates (Gluskin Sheff) (TSX: GS) for CAD14.25 per share which represents a 28 per cent premium to Gluskin Sheff’s closing share price on 22 March, 2019, and a 37 per cent premium to the 60-day volume weighted average price (VWAP). 

The total cash consideration for 100 per cent of Gluskin Sheff’s equity is approximately CAD445 million.

This combination will bring together two of Canada’s most entrepreneurial and successful investment firms and broaden the product suite available to Gluskin Sheff’s clients. Gluskin Sheff will continue to be led by its existing leadership team and operate under its brand.

Gerry Schwartz, Chairman and Chief Executive Officer of Onex, says: “Gluskin Sheff is one of the largest and most respected independent wealth management firms in Canada, serving high net worth families and institutional investors, with a strong long-term track-record of risk-adjusted investment returns and outstanding client service. By combining Gluskin Sheff’s public securities investing platforms with Onex’ private equity and private debt platforms the clients of both firms will have greater investment options.”

Jeff Moody, President and Chief Executive Officer of Gluskin Sheff, says: “Onex is the ideal partner for us and our clients. We have a strong cultural fit and a like-minded approach to investing and risk management, which includes financial alignment between our teams and our investors. This partnership will provide us with the resources to better serve all of our clients and expand our product offerings with alternative investment strategies.”

Nancy Lockhart, Chair of the Gluskin Sheff Board, adds: “We are delighted Onex has recognised our highly valued client base, team and reputation in the market and believe the all-cash offer represents an attractive opportunity for our shareholders.”

The transaction is to be effected by way of a court-approved plan of arrangement and is expected to close in the first half of 2019, subject to receipt of Gluskin Sheff shareholder and court approvals, required regulatory approvals and customary closing conditions.

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