NEW YORK (AP) -- Private equity firm The Blackstone Group will buy industrial products maker Gates Corp. for $5.4 billion, according to Gates' owners.
The Canada Pension Plan Investment Board and private equity firm Onex Corp. say the sale should close later this year. They say CPPIB will get $1.5 billion in net proceeds and Onex will get $550 million.
Gates, based in Denver, makes power transmission belts and fluid power products that are used in industrial and automotive applications.
CPPIB and Onex paid $5 billion to acquire Gates' parent company, Tomkins, in 2010. They say they have sold off eight divisions of Tomkins for a total of $7.9 billion including the Gates sale.
Blackstone Group shares fell 2.3 percent to $32.80 on Friday.