Gates On The Block, Says WSJ Report
According to a report in the Wall Street Journal, Onex Corp. , a Canadian private equity company, is considering selling or making a public stock offering of its Gates Corp. subsidiary. Gates, headquartered in Denver, Colo., manufactures hoses and belts for on- and off-highway vehicles and equipment as well as automotive markets.
A sale or IPO could generate as much as $5 billion, sources told the WSJ. Gates is part of Tomkins Ltd., which was acquired by Onex in a 2010 buyout. Onex executives said the main reason they bought Tomkins was to get Gates, which they have worked to expand in developing economies.
Gates, through a representative, declined to comment.Edit Module