Onex doubles money in healthcare exit(2)

The Toronto-based firm has generated a total of $145m from its $73m investment in 2005 in US healthcare company Center for Diagnostic Imaging.

Onex Corporation has sold Minnesota-based healthcare company Center for Diagnostic Imaging, generating a 2x return multiple and 10 percent internal rate of return, according to the firm.

CDI provides outpatient imaging services including diagnostic imaging, pain management and interventional radiology services. Onex invested $73 million in the business in 2005, the same year the firm closed its second fund on $3.5 billion. Onex has earned a total of $145 million from the sale to California-based Insight Imaging plus a prior distribution. Onex’s portion of the sale to Insight is about $37 million, according to the firm, including $3 million of carried interest plus the prior distribution.

“CDI has been a successful investment for Onex and we are pleased with the outcome for everyone involved,” Onex managing director Robert Le Blanc said in a statement.

The firm was unavailable for comment at press time.

Last month, Onex unveiled plans to open an office in London, the firm’s third location outside of its Toronto headquarters and New York office. Onex invests extensively in the US and Canada but historically has not been an active investors in the UK or Europe. The firm’s most recent fund that collected $4.3 billion in 2009 has investments in four companies, all of which are headquartered in the US.

Onex manages private equity, real estate and credit securities investments, managing approximately C$14 billion (€10.8 billion, $13.7 billion) of which C$10 billion is third-party capital.