Investment fund Blackstone entered into an agreement with affiliates of Onex Corporation and Canada Pension Plan Investment Board to acquire all of the equity interests in Pinafore Holdings B.V., the parent company of Gates Corporation, for approximately $5.4 billion.
The transaction, announced April 4, is expected to close later this year and is subject to customary closing conditions and regulatory approvals.
Gates is a leading global manufacturer of power transmission belts and fluid power products. Gates had $2.9 billion in sales and $536 million in adjusted earnings before interest, taxes, depreciation and amortization in the year ended Sept. 28, 2013, according to a regulatory filing. Gates is based in Denver and has more than 14,300 employees in 30 countries.
Goldman, Sachs & Co., BofA Merrill Lynch and Citi served as financial advisors 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.