Gates Industrial says Blackstone affiliates selling 20M shares in secondary

Gates Industrial (GTES) announced that certain selling stockholders affiliated with Blackstone (BX) have commenced a secondary offering o 20M of Gates’ shares. In connection with the offering, the selling stockholders intend to grant to the underwriters a 30-day option to purchase up to 3M additional ordinary shares. Gates is not offering any ordinary shares in the offering and will not receive any proceeds from the sale of ordinary shares in the offering. Citigroup, Goldman Sachs and Jefferies are serving as the joint lead book-running managers of, and as representatives of the underwriters for, the offering. In addition, Gates announced that, in connection with its existing share repurchase program, it has entered into a share repurchase contract with Citigroup to repurchase $125M of ordinary shares at a price per share equal to the price paid by the underwriters in the offering and has advised Citigroup to purchase such shares from the selling stockholders.