OREANDA-NEWS. September 21, 2012. Onex Corporation ("Onex") (TSX: OCX) and Canada Pension Plan Investment Board ("CPPIB") today announced that CPPIB has agreed to acquire, from Tomkins, its Air Distribution division for approximately USD 1.1 billion. The closing of the transaction is expected to occur in the fourth quarter of 2012 and is subject to customary conditions.

 In 2010, Onex and CPPIB jointly acquired Tomkins, 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. Since acquisition, Tomkins has sold five non-core businesses for total proceeds of almost USD 1 billion, which were primarily used to reduce the company’s debt.

 “The Air Distribution division is a market leader in its industry with a premier product portfolio and strong distribution network, and is well positioned for growth,” said Andrй Bourbonnais, Senior Vice-President, Private Investments, CPPIB. “Through our joint ownership of Tomkins since 2010, we have acquired deep knowledge of the Air Distribution business and have built strong relationships with management. With this acquisition, we will acquire directly a significant majority interest in the Air Distribution division, including the portion that we don’t currently own indirectly through Tomkins. We look forward to our continued strong partnership with the Air Distribution division’s management team to drive the next phase of development for the business.”

 “With the sale of Air Distribution, we're nearing completion of our planned disposition program well ahead of schedule,” said Seth Mersky, a Managing Director at Onex. “We can now focus our efforts on building value in the core Gates business with a significantly de-levered capital structure.”

 Tomkins’ Air Distribution division is a leading North American manufacturer of products that are used to distribute, recycle and vent air, and which are critical components of HVAC systems within non-residential and residential buildings. The Air Distribution division designs and manufactures a broad range of products which are marketed under many well-known brand names including Titus, Krueger, Ruskin and Hart & Cooley.