Onex and Canada Pension Complete the Largest Buyout of 2010

(September 30, 2010) — Onex, Canada’s largest private-equity firm, and the Canada Pension Plan Investment Board (CPPIB) today announced that they have completed the acquisition of Tomkins, a UK-based manufacturer serving the general industrial, automotive and construction markets around the globe.

The total value of the deal comes to $5 billion — including equity and debt — making it the largest private-equity deal this year. The deal surpasses Blackstone’s $4.8 billion acquisition of Dynegy, announced in August. 

“My entire management team and I are excited to be working with Onex and CPPIB,” said Jim Nicol, the Chief Executive Officer of Tomkins, in a statement. “This is a pivotal moment in our company’s history and we’re delighted to have partners that support our vision for the business’s future.”

André Bourbonnais, CPPIB’s Senior Vice-President, Private Investments, added: “Tomkins is a strong company with a diverse portfolio of number one market share brands and businesses. We look forward to working with Onex and Tomkins’ proven management team on the next phase of the company’s growth.”

Onex and Canada Pension Plan are powerful forces in the world of global buyouts. Onex, run by billionaire Gerry Schwartz, manages approximately $12 billion. Last year, CPP beat out all the large private-equity and sovereign-wealth funds in deal volume, the New York Times’ Dealbook reported, including its $4 billion purchase, with TPG, of IMS Health. As of June 30, 2010, the CPP Fund totaled C$129.7 billion, of which C$23.1 billion was invested in private investments.