Going Private • Manufacturing

Onex Partners and CPP Investments Acquire Gates Industrial

On September 30, 2010, private equity firm Onex Partners and pension CPP Investments acquired manufacturer Gates Industrial for 5.0B USD

Acquisition Context
  • This is Onex Partners’ 1st and CPP Investments’ 1st transaction in the Manufacturing sector.
  • This is Onex Partners’ 4th and CPP Investments’ 21st largest (disclosed) transaction.
  • This is Onex Partners’ 18th and CPP Investments’ 3rd transaction in the United States.
  • This is Onex Partners’ 2nd and CPP Investments’ 1st transaction in Colorado.
Investment Fate
  • Gates Industrial was sold to a consortium of financial buyers in 2014 for 5.4B USD.
  • Gates Industrial was sold to a consortium of financial buyers in 2014 for 5.4B USD.
  • Gates Industrial went public in 2018.

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M&A Deal Summary

Date September 30, 2010
Target Gates Industrial
Sector Manufacturing
Buyer(s) Onex Partners
CPP Investments
Deal Type Going Private
Deal Value 5.0B USD

Target Company

Gates Industrial

Denver, Colorado, United States
Gates Industrial is a manufacturer of power transmission belts and a premier global manufacturer of fluid power products. Gates Industrial was founded in 1911 and is based in Denver, Colorado.
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Buyers Overview 2

Buyer

Onex Partners

Toronto, Ontario, Canada

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1984
PE ASSETS 21.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Onex Partners is the private equity investment arm of Onex Corp., a Canadian based public investment and asset management firm that also invests in real estate and credit securities. Onex Partners targets investments in large companies, and ONCAP which invests in smaller middle-market companies. Both groups consider North American businesses in a wide range of industries with a special interest in aerospace, healthcare, and industrial companies. Prospective transaction situations include corporate carve-outs where the firm can leverage restructuring capabilities. Onex Corp. was established in 1984 and is based in Toronto with an additional office in New York City.


Deal Context for Buyer #
Overall 22 of 63
Sector: Manufacturing 1 of 2
Type: Going Private 3 of 4
State: Colorado 2 of 2
Country: United States 18 of 45
Year: 2010 3 of 3
Size (of disclosed) 4 of 30
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-09-07 BrightSpring Health

Louisville, Kentucky, United States

BrightSpring Health Services is a large provider of diversified home and community-based health services to complex, high-cost populations. The company provides nonclinical habilitative services and clinical rehabilitative services for people of all ages and skill levels. Its primary businesses include: behavioral health (including autism services), home health care (including personal care, home health, and hospice), neuro therapy, and job placement and vocational training, supported by pharmacy and telecare ancillary technologies and services. BrightSpring Health Services was formerly known as ResCare and is based in Louisville, Kentucky.

Sell $390M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-10-04 Cosmetic Essence

South Holmdel, New Jersey, United States

Cosmetic Essence, Inc. is a provider of outsourced formulating, manufacturing, filling, packaging, and distribution services to the personal care products industry. Cosmetic Essence manufactures cosmetics and health and beauty care products, such as fragrances, cremes, lotions and color cosmetics, for a diversified base of branded marketers and retailers. Cosmetic Essence, Inc. was founded in 1982 and is based in South Holmdel, New Jersey.

Sell -
Buyer
DESCRIPTION

CPP Investments is a Canadian pension fund focused on a variety of investing strategies, including public equities, debt, and alternative investments. The Firm's private equity arm looks to acquire direct stakes in private companies, as well as make fund investments and acquire secondary positions. For direct stakes in companies, CPP looks to invest across North American and Europe and seeks to commit a minimum of $150 million per transaction. CPP has no industry preferences however the Firm will not invest in real assets. CPP Investments was established in 1997 and is based in Toronto, Ontario.


Deal Context for Buyer #
Overall 4 of 176
Sector: Manufacturing 1 of 4
Type: Going Private 2 of 34
State: Colorado 1 of 3
Country: United States 3 of 82
Year: 2010 2 of 3
Size (of disclosed) 21 of 60
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-06-02 Authentic Brands Group

New York, New York, United States

Authentic Brands Group is a brand development company which owns a major global portfolio of iconic fashion, sports and entertainment brands. ABG's mission is to acquire, manage and build long-term value of consumer brands through partnering with best-in-class licensees and retailers. Authentic Brands Group is based in New York, New York.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-11-01 Stonegate Group

West Midlands, United Kingdom

Stonegate Group operates over 690 pubs and bars across the UK, within a wide variety of formats. Stonegate Group was founded in 2010 and is based in West Midlands, United Kingdom.

Buy £373M