--> Auto/Parts - Autoimotive appear to be a new hot sector for Private Equity and technology firm as Apple Deal and Google involvement in Home and auto appliance, we should see more deal to come with these tech companies trying to have more vertical integration...they will move to take advantage on all aspects fo electronic in the car...we could also see some autoparts trying to make some move on bad performers in the tech sector with technology they could integrate to their business...I will keep an eye on Continental, Valeo...Tom Tom...
>>> WSJ : Blackstone, TPG Prepare $5.5 Billion Bid for Gates Global
As Deadline Approaches, Owners of Denver-Based Manufacturer Also Consider IPO
A consortium including Blackstone Group BX +1.18% LP and TPG is preparing to bid roughly $5.5 billion for manufacturing company Gates Global Inc., said people familiar with the matter, in what would be one of the largest private-equity buyouts of late.
The buyout group plans to make an offer for Gates by a Wednesday bid deadline, the people said. No other bidders are expected to put in offers, they said, though that could change. The owners of Denver-based Gates are separately contemplating an initial public offering of shares in the business.
The Canada Pension Plan Investment Board is weighing keeping an ownership stake in Gates and rolling it into the Blackstone-led group's proposed deal, the people said. CPPIB's current stake is 41.5%. Gates's other major owner is Canadian private-equity firm Onex Corp. OCX.T -0.27% , which holds 55.9%. The exact makeup of the proposed deal remained fluid on Monday.
Gates, which employs more than 14,000 people in 29 countries, manufactures power transmission belts and fluid hoses for automotive companies, and whirlpools for hotels and resorts, among other products.
If a deal is struck, it would be the second-largest private-equity buyout of the year after Cerberus Capital Management LP's agreement last week to purchase grocery-store company Safeway Inc. SWY +0.73% for $9.4 billion. That Blackstone and TPG have teamed up to buy Gates is a testament to the size of the potential deal. It is unusual for private-equity firms to collaborate on takeovers these days, after many so-called club deals from the buyout boom between 2006 and 2008 foundered.
Onex and CPPIB about a year ago started exploring a sale of Gates while also laying the groundwork for an IPO. They enlisted Goldman Sachs Group Inc. to run the sale process. Bank of America Merrill Lynch, Citigroup Inc. and Goldman are advising on the potential IPO and were working late last week to formulate a value that Gates could expect should it trade on a public exchange, one of the people said.
Private-equity firms often engage in such "dual track" sales processes in an effort to maximize the return on their investment. A full sale at a lofty price is their preference, but the alternative of an IPO can put pressure on takeover bidders, especially in situations like this one where there doesn't appear to be much competitive tension.
Onex and CPPIB in 2010 acquired London-based manufacturer Tomkins Ltd., the owner of Gates, in a buyout valued at around $5 billion. The pair invested about $2.2 billion as part of the deal and borrowed the rest. Since acquiring Tomkins, its owners have recouped much of their original cash investment by selling off certain businesses for a total of more than $2.5 billion, according to Onex.
Gates reported adjusted earnings before interest, taxes, depreciation and amortization of roughly $536 million on sales of about $2.9 billion for the 12 months ending in September 2013, according to a regulatory filing.
>>> NYT :
Blackstone and TPG Said to Plan $5.5 Billion Bid for Gates Global
The Blackstone Group and TPG Capital are teaming up in a planned bid for Gates Global, a maker of industrial and automotive parts, a person briefed on the matter said on Monday.
The firms are offering roughly $5.5 billion, according to this person, which would make the deal one of the largest private equity buyouts of the year so far, second only to the buyout last week of Safeway, which was worth more than $9 billion.
The deadline to bid for Gates Global is Wednesday, the person said. No other bidders are expected, though the situation remains fluid.
The Canada Pension Plan Investment Board, one of the owners of Gates Global, may contribute its stake to the Blackstone-TPG deal, according to the person, who spoke on condition of anonymity.
The owners of Gates Global, which include the private equity firm Onex, have also contemplated taking the company public, filing a prospectus for an initial public offering in December. A so-called dual-track process — in which owners pursue both a sale and an I.P.O. — is a popular method of trying to get the best possible price.
Onex and the Canadian pension plan bought Gates Global in 2010. The company, which is based in Denver, makes parts like power transmission belts, engine hoses and hose fittings.