Blackstone to acquire Gates Corp.
Private equity funds managed by Blackstone entered into a definitive purchase agreement to acquire the parent company of the Gates Corporation for $5.4 billion.
The sale is expected to close later this year and is subject to customary closing conditions and regulatory approvals.
Gates, which manufactures power transmission belts and fluid power products, is a division of Tomkins, which Onex Corp. and Canada Pension Plan Investment Board (CPPIB) jointly acquired in 2010 for approximately $5.0 billion.
Including the sale of Gates, Onex and CPPIB will have successfully divested eight divisions of Tomkins, for aggregate proceeds of $7.9 billion. Tomkins was a UK-listed industrial holding company operating a number of general industrial, automotive and construction businesses around the globe.
“It was a tough decision to sell Gates. We don’t see many industrial businesses with its global brand recognition,” said Seth Mersky, a senior managing director of Onex. “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.”
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
