The Canada Pension Plan Investment Board has agreed to pay $1.1bn for the air distribution division of Tomkins, a diversified UK based industrial company that the fund manager owns with Onex Corp, the Canadian Business reported.
The division makes products used in heating, ventilation and air conditioning systems for commercial and residential buildings.
Onex (TSX:OCX) and the CPPIB acquired Tomkins in a US$5bn deal in September 2010. Each owns a 50 per cent interest in the company.
The core business at Tomkins is its Gates subsidiary, a manufacturer of power transmission belts and hydraulic hoses for the industrial and automotive aftermarket.
Since the CPPIB-Onex acquisition, the company has sold five non-core businesses for total proceeds of almost $1bn, which has been mostly used to reduce the company’s debt.
The deal is expected to close in the fourth quarter but other financial details of the transaction weren’t disclosed.