Onex Backed Gates Global Files for $100 Million in U.S. IPOLeslie Picker
Gates Global Inc., the producer of auto parts and industrial products that’s backed by Onex Corp. and Canada Pension Plan Investment Board, filed to raise $100 million in an initial public offering in the U.S.
Proceeds from the sale will go to the private-equity investors, according to a regulatory filing today. The figure is a placeholder amount used to calculate fees and may change. Bank of America Corp., Citigroup Inc. and Goldman Sachs Group Inc. are managing the offering.
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 the CPPIB. Tomkins has been working with banks on a sale or IPO and could fetch $6 billion, people familiar with the matter told Bloomberg earlier this month.
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, the filing shows. Gates’ gross margin was 38 percent in the first nine months of 2013, compared with 36 percent during the same period in 2012, as the cost of sales declined, according to the filing.