Onex Corp. to Purchase York Risk Management

Toronto-based private equity firm Onex Corp. says it has agreed to acquire U.S. risk management firm York Risk Services Group Inc. for US$1.33 billion.

Onex said Wednesday that the transaction is expected to close in the third quarter.

York Risk Services provides property, casualty, and workers’ compensation insurance to more than 6,300 clients in the United States.

The firm has handled claims for the major hurricanes over the past 40 years and claims from the World Trade Center attacks on Sept. 11, 2001.

York Risk Services has 3,800 employees in 75 offices.

Onex will make an equity investment of about US$520 million through its Onex Partners III investment fund, with other partners as co-investors.

Onex manages approximately US$19 billion in private equity assets, credit securities and real estate.