Blackstone to buy manufacturer Gates for $5.4B

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NEW YORK (AP) — Private equity firm The Blackstone Group will buy industrial products maker Gates Corp. for $5.4 billion, according to Gates' owners.

The Canada Pension Plan Investment Board and private equity firm Onex Corp. say the sale should close later this year. They say CPPIB will get $1.5 billion in net proceeds and Onex will get $550 million.

Gates, based in Denver, makes power transmission belts and fluid power products that are used in industrial and automotive applications.

CPPIB and Onex paid $5 billion to acquire Gates' parent company, Tomkins, in 2010. They say they have sold off eight divisions of Tomkins for a total of $7.9 billion including the Gates sale.

Blackstone Group shares fell 2.3 percent to $32.80 on Friday.

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