The Canada Pension Plan Investment Board (CPPIB) has agreed to pay $1.1 billion for the air distribution division of Tomkins, a diversified U.K.-based industrial company.

The division makes products used in heating, ventilating and air conditioning systems for commercial and residential buildings.

CPPIB is already a part owner of Tomkins, which was acquired in 2010 by the Canada Pension Plan (CPP) and Toronto-based Onex Corp. Since then, Tomkins has been selling off non-core businesses.

The CPPIB will have a “significant majority interest” in the Tomkins air distribution division, including the portions it owns directly and indirectly through its stake in the parent company.

The deal is expected to close in the fourth quarter but other financial details of the transaction weren’t disclosed.

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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