Onex and CPPIB eye Tomkins exit

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exit_wayout_170sqPrivate equity-backed car parts and building products maker Tomkins is reportedly exploring a sale for as much as $7bn.

The company’s private equity owners, Onex Corp and the Canada Pension Plan Investment Board (CPPIB) are in talks with investment banks to advise them on a sale, said Reuters, citing several people familiar with the matter.

Onex and CPPIB bought Tomkins for $5bn including $2.2bn of equity in 2010 followed by CPPIB’s acquisition of the company’s air distribution division for $1.1bn in September last year.

The owners could seek to exit their investment in Tomkins via a sale or an IPO and they will start exploring both options in the first quarter of 2014, said the sources.

Tomkins had an annualised EBITDA of $536m at the end of September with net debts of $1.5bn.

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