Blackstone, TPG, CVC weigh $5-6 billion Gates buyout: sources - Reuters
Blackstone Group LP (BX.N), TPG Capital LP and CVC Capital Partners Ltd (CVC.UL) are on a short list of buyout firms competing to acquire Gates Global Inc, in a deal expected to value the industrial company at US$5 billion to US$6 billion, people familiar with the matter told Reuters. Gates, owned by Onex Corp (OCX.TO) and the Canada Pension Plan Investment Board (CPPIB), has chosen those private equity firms for a second round of bidding after reviewing initial offers submitted last week, the people said. Previously known as Tomkins Plc, Gates filed for an initial public offering in December, more than three years after the manufacturer of auto parts and building products was taken private for US$5 billion in 2010. Should a sale occur, it would be one of the largest private equity buyouts in recent years. Leveraged buyouts exceeding US$5 billion have been infrequent since the financial crisis due to the reluctance of firms to invest large amounts of capital.
