Onex, CPPIB To Sell Gates To Blackstone For $5.4 Bln - Quick Facts

(RTTNews) - Onex Corporation (OCX.TO) and its affiliates and Canada Pension Plan Investment Board or CPPIB announced they have agreed to sell Gates Corporation to private equity funds affiliated with Blackstone for $5.4 billion.

Onex said Gates is a division of Tomkins, which Onex and CPPIB jointly acquired in 2010 for about $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 is noted that the Onex Group and CPPIB invested $2.1 billion in the Tomkins acquisition. Upon completion of the sale of Gates, the Onex Group and CPPIB will have received aggregate proceeds of about $4.7 billion, including prior distributions of $1.2 billion, which will result in a multiple of capital invested of approximately 2.2 times and a return on investment of approximately 26% per annum.

Proceeds from the sale of Gates alone to the Onex Group, including co-investors, will be approximately $2.0 billion, of which Onex Corporation's share will be about $550 million, including carried interest. CPPIB's portion of the proceeds from the sale of Gates alone will be approximately $1.5 billion.