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Canadian Onex to acquire Laidlaw units American Medical Response and EmCare

Onex Partners, the private equity arm of Toronto-based Onex Corporation, has agreed with Laidlaw International to acquire two of its subsidiaries, US health services companies American Medical Response and EmCare. The transaction is valued at Can$980m.

Onex Partners, the Can$2.2bn private equity fund established by Onex Corporation, and certain of its limited partners will invest approximately Can$260m in equity. Senior management of the businesses will also be investors and owners.

AMR, headquartered in Denver, is a provider of ambulance transport services. The company provides emergency response services on behalf of communities, municipalities and other local government agencies as well as non-emergency transport services. AMR operates 4,400 vehicles through more than 260 locations with approximately 18,200 employees.

Dallas-based EmCare assists its clients in the operation of their hospital emergency departments, providing recruiting services, staff coordination, quality assurance, departmental accreditation, risk management, billing, record keeping, third-party payment and other administrative services. EmCare has operations across the United States, with over 300 contracts and approximately 4,100 employees and clinicians.

Robert Le Blanc, an Onex managing director, said: 'AMR and EmCare represent two excellent platforms for growth in the emergency medical services industry. Both companies have industry-leading positions, significant and stable customer bases and an experienced management team led by William A. Sanger, CEO of AMR and EmCare.'

'We believe that this investment will enable the management team to take advantage of future growth opportunities that will create shareholder, customer and patient value,' he said.

The transaction is subject to terms and conditions, including regulatory approvals, and is expected to close in the first quarter of 2005.

Onex Partners has also announced that it has completed its purchase of BMP/CEI Holdings, the parent of Cosmetic Essence. Onex Partners invested approximately Can$138m for a 90 per cent ownership interest.

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