September 30, 2010
TORONTO, September 30, 2010 – Onex Corporation (TSX: OCX) (“Onex”) and Canada Pension Plan Investment Board (“CPPIB”) announced today that they have completed the recommended acquisition of Tomkins plc (“Tomkins”) at a price of £3.25 per share in cash. The total transaction value including the assumption of debt is US$5.0 billion.
Tomkins is an industrial holding company that operates a number of businesses serving the general industrial, automotive and construction markets around the globe. Its well known brands include: Gates – the world’s largest aftermarket manufacturer and distributor of belts and hoses for the industrial and automotive market; Schrader – the world’s largest designer and manufacturer of remote tire pressure monitoring systems; Titus and Hart & Cooley – the largest manufacturers of grilles, registers and diffusers serving the North American commercial and residential construction industries, respectively; and Ruskin – the largest manufacturer of dampers and louvers for the North American commercial construction industry.
“My entire management team and I are excited to be working with Onex and CPPIB,” said Jim Nicol, the Chief Executive Officer of Tomkins. “This is a pivotal moment in our company’s history and we’re delighted to have partners that support our vision for the business’s future.”
Seth Mersky, an Onex Managing Director, said, “Gates is one of the most well recognized, trusted and respected brands in the global industrial and automotive sectors. We’re grateful to have the opportunity to work with Jim and his team as they continue to extend its international reach. We’re always happy to own leading North American industrial companies serving markets across the globe.”
André Bourbonnais, CPPIB’s Senior Vice-President, Private Investments, said, “Tomkins is a strong company with a diverse portfolio of number one market share brands and businesses. We look forward to working with Onex and Tomkins’ proven management team on the next phase of the company’s growth.”
The acquisition consideration, including related fees and expenses, was funded with an equity investment of approximately US$2.2 billion, which includes a significant investment by Tomkins’ management team and was otherwise split equally between affiliates of Onex and CPPIB. Onex’ share of the equity investment (US$1.1 billion) was funded by Onex and Onex Partners III, of which US$345 million was Onex’ share. The debt financing was fully subscribed and consisted of facilities and notes totalling US$3.45 billion, of which US$3.15 billion was used to fund the transaction.
About Onex Onex is one of North America’s oldest and most successful investment firms committed to acquiring and building high-quality businesses in partnership with talented management teams. Onex manages investment platforms focused on private equity, real estate and credit securities. In total, the Company manages approximately US$12 billion. Onex generates annual management fee income on approximately US$7.9 billion of third-party capital and is entitled to a carried interest on US$7.2 billion of that capital. As well, Onex invests its own capital directly and as a substantial limited partner in its funds. Onex’ businesses generate annual revenues of $31 billion, have assets of $36 billion and employ more than 210,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at www.onex.com. The Company’s security filings can also be accessed at www.sedar.com.
About Canada Pension Plan Investment Board The CPP Investment Board is a professional investment management organization that invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 17 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, the CPP Investment Board invests in public equities, private equities, real estate, inflation-linked bonds, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2010, the CPP Fund totaled $129.7 billion, of which $23.1 billion was invested in private investments. For more information about the CPP Investment Board, please visit www.cppib.ca.
For further information contact:
Director, Media Relations