New York, NY, July 3, 2014. Blackstone (NYSE: BX) today announced that it has closed the previously announced acquisition of Gates Corporation (“Gates”). Private equity funds managed by Blackstone on behalf of its investors have acquired Gates for $5.4 billion.
Gates is a leading global manufacturer of power transmission belts, fluid power products, and other critical components used in diverse industrial and automotive applications.
“We could not be more pleased to formally begin our relationship with Gates and its superb management team,” said Neil Simpkins, Senior Managing Director in Blackstone’s Private Equity business. “We look forward to working with Gates in the years ahead as the company further establishes itself as a global leader in its industry with an unparalleled reputation for quality products.”
“This investment from Blackstone positions Gates for continued success, and we cannot be more excited to start work with Blackstone’s team to refine operations and explore a wide range of opportunities for continued growth,” said Jim Nicol, Chairman and Chief Executive Officer of Gates Corporation.
Gates is the world’s leading manufacturer of power transmission belts and a premier global manufacturer of fluid power products. Our highly engineered products are critical components used in diverse industrial and automotive applications where the cost of failure is very high relative to the cost of our products. We provide a differentiated value proposition to our customers by offering a complete portfolio of premium product and service solutions for both replacement and first-fit applications across our targeted end markets, which encompass process and specialty, construction, agriculture, energy, transportation and automotive. We sell our products globally under the Gates brand, which is recognized by distributors, original equipment manufacturers and installers as the premium brand for quality and technological innovation, a reputation which we have built for over a century since our founding in 1911. Further information is available at www.Gates.com.
Blackstone is one of the world’s leading investment and advisory firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, the companies we advise and the broader global economy. We do this through the commitment of our extraordinary people and flexible capital. Our asset management businesses include investment vehicles focused on private equity, real estate, hedge fund solutions, non-investment grade credit, secondary funds, and multi asset class exposures falling outside of other funds’ mandates. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.
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