Onex Corp. ONEX-T says it earned US$39-million in its latest quarter compared with a profit of US$127-million in the same quarter last year.
The private equity firm, which keeps its books in U.S. dollars, says the profit amounted to 57 cents US per diluted share for the quarter ended Sept. 30, down from US$1.68 per share a year earlier.
Last week, Onex and American International Group Inc. AIG-N announced a deal to buy Convex Group Ltd., a specialty property and casualty insurance and reinsurance business, for US$7-billion.
The deal will also see AIG acquire a 9.9-per-cent stake in Onex for about US$600-million and commit US$2-billion to strategies managed by Onex over a three-year period.
Onex chief executive Bobby Le Blanc said the acquisition of Convex and strategic relationship with AIG represent a step change in the evolution of Onex that will position it for continued growth.
Onex, which was a founding investor in Convex in 2019 through one of its buyout funds and plans to roll over its existing interest, will own 63 per cent of Convex, while AIG will own 35 per cent, with the balance owned by the Convex management team.