M&A Deal Summary

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 Highlights
  • This is Onex Partners’ 1st and CPP Investments’ 1st transaction in the Manufacturing sector.
  • This is Onex Partners’ 4th and CPP Investments’ 12th largest (disclosed) transaction.
  • This is Onex Partners’ 18th and CPP Investments’ 1st 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.

M&A Deal Summary

Date 2010-09-30
Target Gates Industrial
Sector Manufacturing
Buyer(s) Onex Partners
CPP Investments
Deal Type Going Private
Deal Value 5.0B USD

Target

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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Buyer(S) 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 STATS #
Overall 22 of 63
Sector: Manufacturing M&A 1 of 2
Type: Going Private M&A Deals 3 of 4
State: Colorado M&A 2 of 2
Country: United States M&A 18 of 45
Year: 2010 M&A 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 STATS #
Overall 2 of 56
Sector: Manufacturing M&A 1 of 3
Type: Going Private M&A Deals 1 of 11
State: Colorado M&A 1 of 2
Country: United States M&A 1 of 29
Year: 2010 M&A 1 of 1
Size (of disclosed) 12 of 26
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-07-18 Dorna

Madrid, Spain

Dorna is an international sports management, media, and marketing company that holds the global commercial and broadcasting rights for MotoGP. Dorna

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-10-28 Kinetic Concepts

San Antonio, Texas, United States

Kinetic Concepts, Inc. is a developer and marketer of an innovative medical devices for advanced wound healing and therapeutic treatment systems that address skin breakdown, pulmonary complications, and circulation problems associated with patient immobility. KCI's medical devices and therapeutic systems include V.A.C.® Therapy Systems, as well as specialty beds, mattress replacement systems, wheelchair seating, and related devices. KCI serves hospitals, nursing homes, and home care settings both in the U.S. and abroad.

Buy $6.3B