DENVER—The company holding the reigns of Gates Corp. once again will change.
In the second blockbuster acquisition within the rubber industry in 2014, Blackstone Group L.P., a private equity funds firm, agreed to buy Pinafore Holdings B.V., the Tomkins P.L.C. holding entity that oversees Gates, from present owners Onex Corp. and Canada Pension Plan Investment Board for an estimated $5.4 billion.
In the first major purchase earlier this year, ContiTech A.G. announced plans to acquire competitor Veyance Technologies Inc., doubling its size in North America in the process, for about $1.91 billion. That deal is expected to close in the third quarter.
The transaction involving Blackstone and Gates is subject to customary closing conditions and regulatory approvals and is expected to be finalized in the latter part of 2014.
“It was a tough decision to sell Gates,” according to Seth Mersky, a senior managing director at Toronto-based Onex, which has offices in New York, Toronto and London. “We don't see many industrial businesses with its global brand recognition.
“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.”
“Blackstone is one of the largest equity and advisory firms in the world with $16.2 billion in capital in Blackstone Capital Partners Fund VI,” said William R. Ridenour, president of Polymer Transaction Advisors, a merger and acquisition advisory company based in Newbury, Ohio.