|Bid||74.68 x 0|
|Ask||74.98 x 0|
|Day's Range||74.65 - 75.79|
|52 Week Range||71.28 - 95.08|
|Beta (3Y Monthly)||0.50|
|PE Ratio (TTM)||2.34|
|Earnings Date||Nov 7, 2019 - Nov 11, 2019|
|Forward Dividend & Yield||0.40 (0.50%)|
|1y Target Est||96.36|
(Bloomberg) -- Competition in the cutthroat grocery business is spoiling Onex Corp.’s 2016 purchase of Save-A-Lot Inc., with sales shrinking, leverage soaring and its debt sinking deep into distress.Save-A-Lot is working with investment bank PJ Solomon Securities LLC to bolster itself, according to people with knowledge of the situation. The company is talking to several parties including the Lidl discount chain and other grocers about asset sales, investments or partnerships and other potential options, said the people, who asked not to be named discussing a private matter.Law firms specializing in restructuring debt have started reaching out to represent lenders, the people said, but no firm has been retained by a group. The preliminary discussions began as a precaution after the most recent downbeat earnings report and haven’t turned into formal negotiations with the company, according to the people.The discount grocer is struggling to win customers as Germany’s Lidl and Aldi invest in new U.S. stores and remodel while keeping prices low. With same-store sales and revenue suffering, Save-A-Lot’s debt jumped to more than 20 times its adjusted Ebitda at the end of June, people with knowledge of the results said.Representatives for Save-A-Lot, based in suburban St. Louis, declined to comment. Toronto-based Onex, PJ Solomon and Lidl also declined to comment. The engagement of PJ Solomon was previously reported by Reuters.Onex bought the 1,300-store chain less than three years ago for $1.4 billion. The deterioration in the business since then has spooked investors, sending prices on its loans to fresh lows.On Aug. 8, Onex reported that Save-A-Lot’s trailing 12-month adjusted Ebitda slumped to $35 million, about half the $70 million reported in the previous quarter. Recent quotes on Save-A-Lot’s $722 million first-lien loan have since fallen to the low 40’s from the 50’s immediately following the release, according to people familiar with the pricing.Discount RivalsSave-A-Lot is one of the largest discount grocers in the U.S, with corporate-owned and independent stores in 36 states, according to its website. But results have languished since the Onex deal, and its debt has risen. The chain had more than $820 million of net debt outstanding, comprised primarily of a loan due in 2023, and $24 million of cash at quarter-end, the people said.The stiff competition, weak liquidity and cash burn earned a CCC grade in a March report from S&P Global Ratings, which said that a pro-active restructuring seems increasingly possible. The distressed price of the loan might also tempt the company or Onex to buy the debt back at less than face value, S&P said.Turnaround EffortsStill, the company has some breathing room because of debtor-friendly provisions of its loans.“The debt at Save-A-Lot is covenant light, so there is no financial maintenance covenants attached in the term loan,” Christopher Govan, Onex’s Chief Financial Officer, said on a conference call in May. “There’s no maturities until into the 2020s.”In a effort to revive the business, the company poached Kenneth McGrath, a market veteran from Lidl, in 2017. As chief executive officer, McGrath has closed weaker stores and reduced headcount.Save-A-Lot has “under-performed expectations,” Matt Ross, managing director at Onex, said on a conference call this month, pointing to the intense competition in the food and retail market.Read More: Save-A-Lot May Become Victim to Changing Food Retail Landscape“The goal posts have moved materially there and it’s requiring more and taking longer than expected, but management continues to develop and launch new programs to re-position the company and we continue to support them in those efforts,” he said.Save-A-Lot may have to slash prices to attract and retain customers, according to Jennifer Bartashus of Bloomberg Intelligence.“It’s much harder to win back business you’ve lost, customers tend to have a long memory,” she said in an interview. “You may have to drop the price of a gallon of milk just to drive traffic.”Aldi, for example, expanded its market share among U.S. discounters to about 60% from 56% in 2016, while Save-A-Lot’s share fell to 23% from 28%, according to Euromonitor. Competition is heating up not just from from rival discounters, but also big-box retailers like Walmart Inc., Bartashus said.“Larger players are gobbling up smaller players, or smaller players are just ceasing to exist,” she said. “It’s like watching a slowly sinking ship.”To contact the reporters on this story: Katherine Doherty in New York at email@example.com;Lauren Coleman-Lochner in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Rick Green at email@example.com, Nicole BullockFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
All amounts in U.S. dollars unless otherwise stated TORONTO, Aug. 19, 2019 -- Onex Corporation (“Onex”) (TSX: ONEX) and its affiliated funds today announced they have.
All amounts in U.S. dollars unless otherwise stated TORONTO, Aug. 15, 2019 -- ONCAP today announced it has reached an agreement to partner with the International Language.
CALGARY, Aug. 13, 2019 /CNW/ - WestJet Airlines Ltd. (TSX:WJA.TO - News) ("WestJet") today announced that the Canadian Competition Bureau has granted unconditional approval for WestJet's proposed transaction with Onex Corporation ("Onex") (TSX:ONEX.TO - News) (the "Arrangement") by issuing a no-action letter. Ed Sims, WestJet's President and Chief Executive Officer, said, "Receiving unconditional approval from the Canadian Competition Bureau is another important step on our path to closing the transaction.
All amounts in U.S. dollars unless otherwise stated TORONTO, Aug. 08, 2019 -- Onex Corporation (TSX: ONEX) today announced its financial results for the second quarter and.
ONEX Corporation (TSX:ONEX) has already completed two major acquisitions of publicly traded Canadian companies over the past eight months. Find out why investors need to be paying careful attention to this leading private equity firm.
CALGARY, July 26, 2019 /CNW/ - WestJet Airlines Ltd. (TSX:WJA.TO - News) ("WestJet") today announced that the Court of Queen's Bench of Alberta has granted a final order approving the previously announced proposed transaction with Onex Corporation ("Onex") (TSX:ONEX.TO - News) (the "Arrangement"). The Arrangement was approved by more than 92.5 per cent of shareholders and optionholders who voted at a special meeting of WestJet held on July 23, 2019. The Arrangement is still subject to other conditions to closing, including receipt of the remaining regulatory approvals.
CALGARY , July 26, 2019 /CNW/ - WestJet (TSX: WJA) today announced its second quarter results for 2019, with net earnings of $44.3 million , or $0.38 per fully diluted share compared with a net loss of ...
WestJet Airlines Ltd. shareholders have approved the $5 billion takeover bid by Onex, paving the way for the private equity firm to take the airline private.
CALGARY, July 23, 2019 /CNW/ - WestJet Airlines Ltd. (TSX:WJA.TO - News) ("WestJet") today announced that at a special meeting held today (the "Meeting"), its shareholders and optionholders overwhelmingly voted to approve its previously announced proposed transaction with Onex Corporation ("Onex") (TSX:ONEX.TO - News). Of the votes cast at the Meeting, more than 92.5 per cent of shareholders and optionholders who voted were in favour of the proposed transaction. WestJet and Onex entered into a definitive agreement on May 12, 2019 (the "Arrangement Agreement"), for the proposed acquisition of WestJet by Onex under a plan of arrangement, pursuant to which each outstanding share of WestJet will be exchanged for $31.00 in cash subject to the terms and conditions of the Arrangement Agreement (the "Arrangement"), following which WestJet will operate as a privately-held company.
Onex Corporation (“Onex”) (ONEX.TO) and its affiliated funds (the “Onex Group”) today announced they have agreed to sell Jack’s Family Restaurants (“Jack’s”). The transaction is expected to close in the third quarter of 2019 subject to customary closing conditions and regulatory approvals. The terms of the transaction were not disclosed.
All amounts in U.S. dollars unless otherwise stated TORONTO, July 12, 2019 -- Onex Corporation (TSX: ONEX) will release its results for the six months ended June 30, 2019 on.
All amounts in U.S. dollars unless otherwise stated TORONTO, July 02, 2019 -- Onex Corporation (“Onex”) (TSX: ONEX) announced today that Onex Credit Partners, LLC (“Onex.
WestJet and Onex entered into a definitive agreement on May 12, 2019, for the proposed acquisition of WestJet by Onex under a plan of arrangement pursuant to which each outstanding share of WestJet will be exchanged for $31.00 in cash (the "Arrangement").
All amounts in U.S. dollars unless otherwise stated TORONTO, June 03, 2019 -- Onex Corporation (“Onex”) (TSX: ONEX) and Gluskin Sheff + Associates Inc. (“Gluskin Sheff”) (TSX:.
Every portfolio needs diversity, and Horizons S&P/TSX 60 Index (TSX:HXT), Onex Corporation (TSX:ONEX), and VieMed Healthcare Inc. (TSX:VMD) have it in spades.
Toronto's stock market will nudge higher over the rest of the year, but investors will need to wait until the second half of 2020 for the index to better April's record peak as global trade tensions weigh on company earnings, a Reuters poll found. The median forecast from a survey of 26 portfolio managers and strategists polled was for the Toronto market to rise 1.3% from last week's close to 16,445 by December. "It looks like we have moved into a common seasonal soft patch that could run through to October depending on how long it takes to get U.S.-China trade talks and Brexit sorted out," said Colin Cieszynski, chief market strategist at SIA Wealth Management.
Buyout firm Onex Corp pitched its offer at a rich 67% premium to the stock's Friday closing price, which would make it the world's biggest private equity-backed airline acquisition, according to Refinitiv data. Onex saw an opportunity in Canada's aviation market duopoly to build up the Calgary-based low-cost carrier against Air Canada, even in a country where high commercial aviation fees and surcharges are regularly derided by airlines, a source familiar with Onex's thinking told Reuters. "WestJet is a rather unique opportunity in a market dominated by (Air Canada)," said a second industry source.
The surprise offer for C$31 a share, a 67% premium to their closing price on Friday, sparked a surge in WestJet shares, which closed up 60% at $29.61. If completed, it would be the biggest private equity deal ever for an airline, according to Refinitiv data. If Onex obtains shareholder and regulatory approvals, the deal would help Schwartz get his hands on an airline two decades after he missed out on buying Air Canada, WestJet's bigger rival.
WestJet Airlines Ltd. (“WestJet”)(WJA.TO) announced today it has entered into a definitive agreement that provides for its acquisition in an all-cash transaction. Under the terms of the agreement, Onex Corporation (“Onex”)(ONEX.TO) and its affiliated funds will acquire all outstanding shares of WestJet for $31.00 per share, after which WestJet will operate as a privately-held company. The transaction value is approximately $5 billion including assumed debt.
All amounts in U.S. dollars unless otherwise stated TORONTO, May 10, 2019 -- Onex Corporation (“Onex”) (TSX: ONEX) confirms all nominees set forth in the management.