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E-mail ID will not be published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

  • India’s festivals teach us to share our wealth and joy

    India is an aporia in its own true sense.

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

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Zehra Naqvi

How smells evoke strong memories

Remember that time when a passing fragrance transported you to ...

Dharmendra Khandal

Indian zoos need a fresh approach

Recently, when a man jumped in a tiger trench of ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture