Blackstone, TPG offer $5.5 bn for Gates Global: Source

Written by AFP | New York | Updated: Mar 11 2014, 18:44pm hrs
Gates GlobalBid by Blackstone and TPG is timed ahead of a Wed deadline for potential buyers to make offers: Source Reuters
A consortium that includes private equity firms Blackstone Group and TPG plans to offer USD 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 USD 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 USD 2.9 billion in sales and USD 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.