DENVER, Colo. – Private equity funds managed by Blackstone have entered into a definitive purchase agreement with affiliates of Onex Corp. and Canada Pension Plan Investment Board to acquire all of the equity interests in Pinafore Holdings B.V., the parent company of Gates Corp. (Gates). The transaction is expected to close later this year and is subject to customary closing conditions and regulatory approvals.
The aggregate consideration payable in the transaction will be approximately $5.4 billion (subject to certain customary adjustments). Gates is a leading global manufacturer of power transmission belts and fluid power products that are highly engineered and critical components, used in diverse industrial and automotive applications. Gates derives a majority of its sales from replacement markets around the world.
Goldman, Sachs & Co., BofA Merrill Lynch and Citi served as financial advisers to Gates. Latham & Watkins LLP served as legal counsel to Gates.
Morgan Stanley, Barclays, XMS Capital and Deutsche Bank served as financial advisors to Blackstone. Simpson Thacher & Bartlett LLP served as legal counsel to Blackstone. Blackstone has secured committed debt financing to be arranged by Credit Suisse, Citibank, Goldman Sachs, Morgan Stanley, Deutsche Bank and UBS.
