March 11 (Bloomberg) -- Blackstone Group Inc. and TPG Capital are preparing to offer about $5.5 billion for auto-parts and industrial products maker Gates Global Inc., a person with knowledge of the matter said.
Bids for Gates Global, which is being sold by Onex Corp. and Canada Pension Plan Investment Board, are due later this week, said the person, asking not to be identified discussing confidential information.
Gates Global’s owners have been working with banks on a sale or IPO and could fetch $6 billion, people familiar with the matter told Bloomberg in December. The company filed for a U.S. IPO later that month.
Gates, which is based in Denver, was acquired in 1996 by London-based Tomkins Ltd. The British engineering firm was purchased 14 years later for about $4.5 billion by Onex and Canada Pension.
Gates manufactures power transmission belts, fluid products and other industrial equipment for customers such as Deere & Co., Daimler AG and Bombardier Inc. The company posted sales of about $2.9 billion in the year through September 2013, a December filing for an initial public offering shows.
Spokesmen for Blackstone and TPG declined to comment on their interest in Gates Global, which was earlier reported by the Wall Street Journal. A spokeswoman for Canada Pension also declined to comment, while officials at Onex didn’t reply to phone calls seeking comment.
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