TORONTO—Onex Corp. and Canada Pension Plan Investment Board has signed a deal to sell Gates Corp. to private equity firm Blackstone for US$5.4 billion.
Gates is a manufacturer of power transmission belts as well as hydraulic and industrial hoses and couplings.
Onex says proceeds from the sale to the Onex Group, including its co-investors, will be approximately $2 billion, of which Onex Corp.’s share will be approximately $550 million.
CPPIB’s proceeds from the sale of Gates will be approximately $1.5 billion.
Gates is a division of Tomkins, a maker of belts and hoses for the industrial and automotive markets, that Onex and CPPIB jointly acquired in 2010 for roughly $5 billion.
Onex says including the sale of Gates, they will have successfully sold eight divisions of Tomkins for $7.9 billion in aggregate proceeds.