Saturday, August 29th21.2°C
27214

Onex and CPPIB selling Gates Corp. for $5.4 billion to Blackstone

TORONTO - Onex Corp. (TSX:OCX) and Canada Pension Plan Investment Board has signed a deal to sell Gates Corp. for US$5.4 billion to private equity firm Blackstone.

Gates is a manufacturer of power transmission belts as well as hydraulic and industrial hoses and couplings.

Onex said Friday proceeds from the sale to the Onex Group, which includes its co-investors, will be roughly $2 billion, of which Onex Corp.'s share will be approximately $550 million.

CPPIB's proceeds from the sale of Gates will be approximately $1.5 billion.

Onex senior managing director Seth Mersky said it was tough decision to sell Gates.

"We don't see many industrial businesses with its global brand recognition," he said in a statement.

"Nonetheless, Onex shareholders and our limited partners have done very well. We have thoroughly enjoyed partnering with the Tomkins management team and wish them continued success."

The deal is expected to close later this year, subject to regulatory approvals and other customary conditions.

Gates is a division of Tomkins, a maker of belts and hoses for the industrial and automotive markets, that Onex and CPPIB jointly acquired in 2010 for roughly $5 billion.

Onex says including the sale of Gates they will have successfully sold eight divisions of Tomkins for $7.9 billion in aggregate proceeds.

In addition to Gates, Tomkins still owns Aquatic, a maker of acrylic bathtubs and shower enclosures.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX13865.07+98.40
S&P CDNX555.67+10.10
DJIA16643.01-11.76
Nasdaq4828.32+15.62
S&P 5001988.87+1.21
CDN Dollar0.75730.00
Gold1119.50-5.10
Oil45.26+2.70
Lumber237.20-9.70
Natural Gas2.719+0.055

 
Okanagan Companies
Pacific Safety0.165+0.005
Knighthawk0.010.00
QHR Technologies Inc1.29+0.05
Cantex0.04-0.01
Anavex Life Sciences1.34-0.05
Metalex Ventures0.055+0.000
Russel Metals21.41+0.43
Copper Mountain Mining0.64-0.01
Colorado Resources0.075-0.005
ReliaBrand Inc0.004-0.000
Sunrise Resources Ltd0.025+0.005
Mission Ready Services0.07+0.01
Decisive Dividend Corp2.75+0.14

 



25990

FEATURED Property
23701274050 Sunshine Road
3 bedrooms 4 baths
$609,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...


Your business is not a bank

Photo: Thinkstock.comYour plumbing business is not a bank. But when you are giving terms to customers that exceed what you get from your suppliers, you become one. And every time that someone does not...


Begin with the end in mind

Photo: ContributedWe humans love our dates: birthdays, anniversaries, 9/11, the Ides of March - our lives are intimately woven within the tapestry of the calendar. So it should come as no surprise whe...

_





26509


Member of BC Press Council


27438