Shearman & Sterling is advising Canada Pension Plan Investment Board (CPPIB) on the financing aspects associated with its acquisition of the Air Distribution division of Tompkins for approximately $1.1 billion. Along with Onex, a leading private equity firm, CPPIB has jointly owned Tompkins since 2010.
The closing of the transaction is expected to occur in the fourth quarter of 2012 and is subject to customary conditions.
Tomkins is an industrial holding company that operates a number of businesses serving the general industrial, automotive and construction markets around the globe. Its core business, Gates, is a leading manufacturer of power transmission belts and hydraulic hoses for the industrial and automotive aftermarket.
Onex is a private equity firm that manages investment platforms focused on private equity, real estate and credit securities. In total, the company manages approximately $14 billion, of which $9 billion is third-party capital. Onex invests its approximately $5 billion of proprietary capital directly and as a substantial limited partner in its Funds.
CPPIB is a professional investment management organization that invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, inflation-linked bonds, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments.
The Shearman & Sterling team included partners Patricia Hammes (New York-Project Development & Finance) and Joshua Thompson (New York-Finance); counsel Benjamin Cheng (New York-Finance); and associates Paul Epstein, Ranbir Chowdhary and Lisha Li (all New York-Project Development & Finance).
