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E-mail ID will not be published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

  • Signalling good times, current account deficit is likely to grow from here on

    The current account deficit (CAD) numbers for April-June quarter declined sharply to 1.7 per cent of GDP.

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

Arun Nigavekar

Disruptive innovation in education

The past two weeks had a fair share of interesting ...

Rajgopal Nidamboor

Regain the spirit of focused power

For aeons, the human race has been experimenting with a ...

Gautam Gupta

Manufacturing must keep workers’ welfare in mind

It may be early days yet, but the labour reforms ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture