Tomkins completes sales negotiations
British manufacturing group to recommend £2.9 billion deal
27 July 2010
UK firm Tomkins is set to recommend a takeover deal to
shareholders after completing sales negotiations with Canada's
largest private equity firm.
The manufacturing and engineering group has received a £2.9
billion bid from US private equity firm Onex Corporation and the
Canada Pension Plan Investment Board.
David Newlands, chairman of Tomkins, claimed the 325p-per-share
deal adequately values the firm.
He said: "The cash offer [from the consortium] provides Tomkins'
shareholders with certain value today and fairly reflects both the
value of the group today and its future potential."
Tomkins was hit by the recession but recently recovered to
record a 23 per cent increase in sales in the first half of
2010.
The company employs over 25,000 workers worldwide, including
1,500 staff across its six UK plants.
Onex currently operates a portfolio of companies generating
revenues of around 31 billion Canadian dollars (£19.3 billion) per
year.