The proposed $4.5 billion takeover of Gates Corp.’s parent company is not expected to have an impact on its Denver operations.
Onex Corp., a Toronto-based private-equity firm, and the Canada Pension Plan Investment Board have agreed to buy Tomkins PLC, a British conglomerate that acquired Gates for $1.1 billion in 1996. Gates employs 520 people between its offices at 1551 Wewatta St. and the Denver Tech Center.
A representative from Onex could not be reached for comment. Tomkins said last week that it had opened its books to Onex and the pension plan and that due diligence was at an advanced stage, according to Reuters. Takeover talks began in March.
“We fully anticipate it will be business as usual for Gates going forward,” said Tom Reeve, executive vice president of Tomkins. “Gates is committed to the city of Denver, and its corporate headquarters would remain in Denver.”
Gates also is moving forward with cleanup at its former rubber factory south of downtown. The company took the property back last year after developer Cherokee Denver was unable to secure financing to continue environmental remediation.
“The potential transaction would have no impact on Gates’ commitment to the responsible redevelopment and stewardship of its former campus on South Broadway,” Reeve said.
The much-touted redevelopment of the old factory, which would have been Denver’s largest since Stapleton, was expected to cost $1 billion and take up to 15 years to complete. Developers originally projected the city would gain 2,500 housing units and 5,000 permanent jobs from the project, boosting city tax revenues.
Tomkins is the latest British company to be targeted for takeover by a North American company. St. Louis-based Emerson Electric acquired power-supply-systems maker Chloride; San Francisco-based URS Corp. bought engineering consultant Scott Wilson Group; and Omaha-based Valmont Industries purchased Delta, an industrial engineering firm, according to Reuters.
Margaret Jackson: 303-954-1473 or mjackson@denverpost.com
