TORONTO — Onex Corp. is leading a $718-million deal to acquire a 4,000-employee German manufacturing company, the first European investment for the Toronto-based company’s flagship private equity fund.KraussMaffei AG, a manufacturer of plastic and rubber processing equipment, is based in Munich, and operates key manufacturing facilities in Germany, Switzerland, Slovakia and China.Onex Partners III will make an equity investment of $340 million. Onex manages the fund on behalf of itself and other investors. The company’s own share of the deal will be about $86 million.For the year ended June 30, 2012, KraussMaffei generated approximately $1.26 billion in revenues. The transaction is expected to close by March 31, 2013 subject to regulatory approvals.“Building on our recent success, we see good opportunities to further grow the company. I am very pleased to be partnering with Onex given its track record and experience in our industry,” Jan Siebert, the CEO of KraussMaffei said in a statement.Onex managing director David Mansell said Onex looks forward to working with Siebert and his management team.“KraussMaffei is a global leader in each of its three segments, with a decades-long reputation for technology and quality,” Mansell said.Onex manages investments focused on private equity, real estate and credit securities. In total, the company manages about $14 billion, of which $9 billion is third-party capital.