€3.575bn ($4.44bn) will be paid at the closing of the transaction, with an additional amount of up to €175m ($217m) payable based on the financial performance of SIG in 2015 and 2016.
'Next phase of growth'
Rolf Stangl, CEO, SIG, said it was excited about the next phase of its growth with Onex. The company is the world No.2 behind Tetra Pak in paperboard drinks cartons.
Onex is a private equity firm with offices in Toronto, New York and London. The equity investment of approximately $1,250m will be made by Onex Partners IV, certain limited partners as co-investors, including Onex, and SIG's management team.
“SIG's management team has successfully proven its ability to enter and grow in new markets, while maintaining its standard of excellence in existing markets," said Nigel Wright, managing director, Onex London.
"We look forward to partnering with Rolf Stangl and his team to further build upon SIG's impressive track record and continue its growth."
Onex has been focusing on its European expansion, most recently opening a credit office in October to offer collateralized loan obligations on the continent.
It made one other acquisition this year, in July, when it purchased York Risk Services Group, a provider of risk management, insurance claims and managed-car services, for $1.33bn.
Packaging conglomerate RGHL
Reynolds Group Holdings (RGHL) announced in September this year it had selected several private equity groups, including CVC, Onex, BC Partners, Bain and Partners Group, to participate in the second round of bidding for its Swiss subsidiary SIG Combibloc.
The packaging conglomerate is owned by New Zealand’s wealthiest man, Graeme Hart, who bought SIG for $2.3bn in 2007and is now trying to trim the debt it has accumulated through leveraged buyouts. It has mandated Goldman Sachs to organise the sale.
Hart needs to reduce the $18bn debt pile his packaging empire built up in an acquisition spree. Those deals included the $6bn acquisition of Pactiv, the maker of Hefty trash bags, in 2010, and the $4.5bn takeover of plastic container producer Graham Packaging in 2011.
SIG manufactures aseptic carton packaging that allows juices, milk, soups and sauces to be stored for a long period of time without refrigeration. The company has around 5,100 employees in 40 countries.