Onex, CPPIB to sell Gates to Blackstone for $5.4 bln, realize 2.2x return

Canadian private equity firm Onex Corp and Canada Pension Plan Investment Board (CPPIB) have agreed to sell industrial conglomerate Gates Corp to Blackstone Group for US$5.4 billion. The sale is expected to close later this year. Gates is a division of U.K.-based Tomkins, taken private by Onex and CPPIB in 2010 for US$5 billion. Onex said that including Gates, the two investors will have divested eight divisions of Tomkins, for proceeds of US$7.9 billion. Upon completion of the Gates sale, Onex and CPPIB will also have received aggregate proceeds of around US$4.7 billion, including prior distributions of US$1.2 billion, resulting in a multiple of capital invested of about 2.2 times and a return of about 26% per annum.

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