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Gates Industrial Completes $242 Million Secondary Offering and $50 Million Share Repurchase

02.22.24

Simpson Thacher represented Gates Industrial Corporation plc (“Gates”) in connection with a secondary offering of ordinary shares by selling shareholders affiliated with Blackstone Inc. The offering of 20,125,000 ordinary shares of Gates, which included the full exercise of the underwriters’ option to purchase 2,625,000 additional shares, raised $242 million in proceeds to the selling shareholders. Gates also effected a $50 million share repurchase of 4,151,100 ordinary shares pursuant to a share repurchase contract with Citigroup Global Markets Inc., who in turn purchased such ordinary shares from the selling shareholders.

Gates is a global manufacturer of innovative, highly engineered power transmission and fluid power solutions. Gates offers a broad portfolio of products to diverse replacement channel customers, and to original equipment manufacturers as specified components. Gates’ products are used in applications across numerous end markets, including: automotive replacement and first-fit; diversified industrial; industrial off-highway; industrial on-highway; and personal mobility.

The Simpson Thacher team included Edgar Lewandowski and Sydney Mark (Capital Markets); Mimi Cheng, Emma Light, Eszter Boldis and Matthew Galla (Backleverage Financing); Clare Gaskell, Vishaal Patel and Sam Moon (Corporate – London); Andrew Purcell and Kris Liu (Tax – New York); Yash Rupal, Sarah Lindley and Phoebe Adams (Tax – London); and Jennifer Nadborny and Bettina Elstroth (Public Company Advisory Practice).