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Onex, CPPIB-owned Tomkins selling Schrader division for US$505M

TORONTO - U.K.-based industrial group Tomkins Plc, jointly owned by Onex Corp. (TSX:OCX) and the Canada Pension Plan Investment Board, is selling its tire pressure monitoring division for about half a billion dollars, Onex announced Monday.

The Toronto-based private equity firm said Tomkins' Schrader division is being sold to Madison Dearborn Partners LLC for US$505 million in cash plus a small minority equity interest in the parent of the purchasing company.

"Proceeds of the sale are expected to be used primarily to repay existing indebtedness at Tomkins," Onex said in a release.

Closing is expected in the second quarter.

Onex and the CPPIB acquired Tomkins in a US$5-billion deal in September 2010. Each owns a 50 per cent interest in the company.

Tomkins is an industrial holding company that operates a number of businesses serving the general industrial, automotive and construction markets around the globe.

Schrader manufactures tire pressure monitoring systems, valve products and tire hardware and related accessories for both original equipment manufacturers and aftermarket customers.

Toronto-based Onex manages some $14 billion of which $9 billion is third party capital. Its businesses have assets of $41 billion, generate annual revenues of $37 billion and employ approximately 246,000 people worldwide.

The CPPIB is a professional investment management organization that invests surplus contributions on behalf of the 18 million Canadian contributors and beneficiaries of the Canada Pension Plan. As of Dec. 31, the CPPIB fund totalled C$152.8 billion.

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