The Canada Pension Plan Investment Board (CPPIB) and Onex have completed the sale of Gates Corp., Tomkins’ principal remaining business, to private equity funds affiliated with Blackstone for US$5.4 billion ($5.7 billion).
The CPPIB’s portion of the proceeds from the sale of Gates alone is about US$1.5 billion.
The CPPIB and Onex jointly acquired Tomkins in 2010 for approximately US$5 billion. Including the sale of Gates, the CPPIB and Onex have successfully divested eight divisions of Tomkins for proceeds of US$7.9 billion.
The CPPIB and Onex invested US$2.1 billion in the Tomkins acquisition. Including the sale of Gates, the CPPIB and Onex have received aggregate proceeds of approximately US$4.6 billion, including prior distributions of US$1.2 billion, resulting in a multiple of capital invested of approximately 2.2 times and a return on investment of approximately 26% per annum.
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