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IPO Watch: Blackstone Explores IPO Of Gates Global


Private equity firm Blackstone Group LP is exploring options for a potential initial public offering of Gates Global LLC, Reuters reported, citing people familiar with the matter.

As per the report, an IPO, which could occur as soon as 2018, could value Gates at more than $7 billion, including debt.

Blackstone acquired the US-based auto and building products manufacturer in 2014 for $5.4 billion. After the acquisition, Gates struggled to generate earnings growth as orders were hit by weak demand in the agriculture, infrastructure, energy and mining markets. However, Blackstone managed to stabilize the business by administering a significant cost cutting program.

The private-equity giant is said to be in the early stages of laying the groundwork for the possible offering. Blackstone reportedly may hire IPO underwriters in the next few months to prepare to take Gates public in 2018.

Colorado-based Gates manufactures power transmission belts and fluid power products used in various industrial and automotive applications. Last year, the company generated sales of $2.7 billion.

by RTTNews Staff Writer

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