Posted July 27, 2010
Tomkins agrees to be sold to Canadian investors
U.K.-based engineering and manufacturing company Tomkins PLC announced it agreed to be acquired by an investment vehicle established by Canadian private-equity firm Onex Corp. and the Canada Pension Plan Investment Board for about GBP2.89 billion.
In a statement, the Canadian organizations said the acquisition of Tomkins represents an attractive investment opportunity in the industrial, automotive and building products markets, in which Tomkins has strong positions and owns some of the most recognizable brands.
Pinafore Acquisitions Ltd., a consortium created for the purchase, said it intends to support Tomkins in implementing its current strategy of geographic expansion, organic growth in its core U.S. market, and strategic acquisitions, and it believes that this next stage of Tomkins' development would be best achieved under private ownership, with long-term oriented shareholders such as Onex and CPPIB.
Tomkins is a global engineering and manufacturing group which manufactures a variety of products for the industrial, automotive and building products markets across North America, Europe, Asia and the rest of the world. It acquired the Gates Corporation in 1996. The Tomkins Group employs more than 25,000 staff and operates in over 23 countries.
In the last year, Tomkins reported revenues of $4.1 billion and operating profit of $263 million.
Commenting on the acquisition, Seth Mersky, chairman of Pinafore, said:
"We recognise that as economies around the world continue to struggle, significant challenges remain for all industrial companies. We believe that our offer represents a great reward for Tomkins' shareholders and a chance for us to build value over a long investment horizon."
