Dec 23 (Reuters) - Tomkins Plc, a manufacturer of auto parts and building products that was taken private in 2010 in a $5 billion leveraged buyout, filed for an initial public offering in the United States on Monday under the name Gates Global Inc.
In the filing, Gates proposed to raise up to $100 million in the IPO. The amount of money a company says it plans to raise in its first IPO filing is used to calculate registration fees. The final size of the IPO could vary.
Reuters first reported last month, based on sources familiar with the matter, that Onex Corp and the Canada Pension Plan Investment Board, or CPPIB, were exploring a sale of Tomkins that could value it at as much as $7 billion. [ID:nL2N0J725G}
A dual-track process to explore a sale of Tomkins to another company or private equity firms, while also pressing ahead with plans for an IPO, is expected to start in the first quarter of 2014, the sources said.
Gates is the name of the Tomkins division that accounts for most of its business. The company decided to adopt this name as its prepares for an IPO.
The Denver, Colorado-based firm has manufacturing operations in 29 countries. It sells products ranging from power transmission systems to acrylic bathtubs in over 120 countries, according to the filing.
Gates serves a broad range of sectors, including oil and gas, mining, construction, agriculture, transportation, automotive and manufacturing.
The company generated $2.9 billion in sales and $536 million in adjusted earnings before interest, tax, depreciation and amortization in the 12 months ending Sept. 28, the filing shows.
The Gates shares to be sold in the IPO will come only from its private equity owners, which will pocket the proceeds, according to the filing. The amount of shares to be sold has yet to be disclosed.
Onex, CPPIB and Tomkins’ management invested $2.2 billion as equity when they took Tomkins private in 2010 for $5 billion, including debt. In September 2012, CPPIB agreed to acquire Tomkins’ air distribution division, which makes products for air-conditioning systems, for about $1.1 billion.
Bank of America Merrill Lynch, Citigroup Inc and Goldman Sachs Group Inc are named as lead IPO underwriters in the filing. Goldman Sachs will lead the effort to sell the company outright to another party, the sources say.