Blackstone, TPG offer $ 5.5b for Gates Global: Source

A consortium that includes private equity firms Blackstone Group and TPG plans to offer $5.5 billion to acquire auto supply firm Gates Global Inc., a person familiar with the matter said.

The deal would be one of the largest private equity transactions so far this year after Cerberus Capital last week announced the $9.1 billion purchase of supermarket Safeway, source said yesterday.

Gates Global is a leading producer of power transmission belts and fluid power products for the automobile and other industries.

The company garnered $2.9 billion in sales and $25 million in profits in the year ended September 28, 2013, according to a US securities filing. Last December, Gates filed papers for an initial public offering.

Gates is controlled by Canadian private equity company Onex and the Canada Pension Plan Investment Board.

The bid by Blackstone and TPG is timed ahead of a Wednesday deadline for potential buyers to make offers, the source said.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Exchange managements must distinguish between speculation and gambling

    Every bull run in the Indian equity market raises the spectre of excessive speculation.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Roopen Roy

Building smart cities the Indian way

Today more than half of the world’s population lives in ...

Zehra Naqvi

The mere display of power is not success

The stars are not afraid to appear like fireflies —Rabindranath Tagore ...

Dharmendra Khandal

Let the tiger breathe in its natural home

The world has been observing July 29 as International Tiger ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture