* Tomkins continues to sell non-core units
* Deal to close in fourth quarter
TORONTO, Sept 21 The Canada Pension Plan
Investment Board (CPPIB) said on Friday it will pay $1.1 billion
for the heating and air conditioning business of Tomkins Ltd
, a British-based industrial holdings company jointly
owned by CPPIB and Onex Corp.
Canadian private equity firm Onex and CPPIB, which manages
one of the world's largest pension funds, acquired Tomkins in
2010, and the company has since reduced its debt by selling five
non-core businesses for total proceeds of almost $1 billion.
"With this acquisition, we will acquire directly a
significant majority interest in (Tomkins') air distribution
division, including the portion that we don't currently own
indirectly through Tomkins," Andre Bourbonnais, CPPIB's senior
vice president of private investments, said in a statement.
The division is a North American manufacturer of
residential and non-residential heating, venting and air
conditioning (HVAC) products.
Onex said the sale of the Tomkins unit puts its disposition
program ahead of schedule. It said it can now concentrate on
Tomkins' core business, Gates Corp, a manufacturer of power
transmission belts and hydraulic hoses for the industrial and
"We can now focus our efforts on building value in the core
Gates business with a significantly de-levered capital
structure," Onex Managing Director Seth Mersky said in a
The HVAC unit deal is expected to close in the fourth
quarter of this year.