View Count: 403 |  Publish Date: April 04, 2014
Blackstone Group agrees to acquire Gates Global for $5.4 billion

Blackstone Group agreed to acquire industrial-products maker Gates Global Inc. from Onex Corp. and Canada Pension Plan Investment Board for $5.4 billion.
Gates, which makes power transmission belts, fluid hoses and other industrial equipment, filed in December for an initial public offering of stock as Toronto-based Onex and Canada Pension Plan planned an exit of their investment. Denver-based Gates, led by Chief Executive Jim Nicol, posted sales of about $2.9 billion for the year through September.
Gates sells products to customers including Deere & Co., Daimler and Bombardier Inc., with North America accounting for half its sales, according to a filing with the Securities and Exchange Commission.
It was a tough decision to sell Gates, Seth Mersky, an Onex senior managing director, said in a statement. We dont see many industrial businesses with its global brand recognition.
The acquisition will be New York-based Blackstones biggest private-equity deal since taking over Hilton Worldwide Holdings Inc. seven years ago. The firms deal-making has been stagnant as rallying stock markets in 2013 led to high prices that the firm chose to pass on. Its private-equity group deployed $5 billion from its funds last year, the same as in 2012, as Blackstone kept getting outbid, President Tony James said.
Private-equity deals globally stand at $164.8 billion this year, a 48% increase from the same period last year, according to data compiled by Bloomberg.
Blackstone acquired Hilton in 2007 for $26 billion. The firms real estate funds purchased Centro Properties Groups U.S. shopping centers for $9.4 billion in 2011. .taboolaDiv { border-top: 1px solid #EEE; border-bottom: 1px solid #EEE; padding: 15px 0; } #_pmfa-sky1-f { width: 610px; float: none; } #pmad-in2 { margin-top: 30px; float: none; } #_pmfa-sky1-f div.text-body, #_pmfa-sky1-f .wrap-out, #_pmfa-sky1-f .wrap-in { width: 610px; } #_pmfa-sky1-f ul.text-body li { width: 49%; float: left; } Weve upgraded our reader commenting system. Learn more about the new features. Los Angeles Times welcomes civil dialogue about our stories; you must register with the site to participate. We filter comments for language and adherence to our Terms of Service, but not for factual accuracy. By commenting, you agree to these legal terms. Please flag inappropriate comments.Having technical problems? Check here for guidance.


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Time: 23:23  |  News Code: 394657  |  Site: L. A. Times
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