Tomkins Plc, the parent of Denver-based Gates Corp., said it plans to spend $500 million on acquisitions over the next 12 months after purchases helped boost second-quarter profit 38 percent.
China and India are growth markets, and Tomkins may seek targets to expand its industrial and building product divisions, which supply products from hoses to grills and bath fixtures, chief executive James Nicol, 51, said.
“The areas we’re focusing on are the industrial space and building products,” he said. “All of our recent acquisitions are performing ahead of plan.”
Tomkins is emerging from a cost-cutting program that has involved job cuts and plant closures, required to counter falling car production in North America and a slump in office building.
Tomkins’ Gates unit, the No. 1 maker of auto transmission belts, helped design and make the electromechanical drive for PSA Peugeot Citroen’s C3 model.
