Simpson Thacher Represented Gates Industrial Corporation in Secondary Offering and Share Repurchase

Simpson Thacher Represented Gates Industrial Corporation in Secondary Offering and Share Repurchase

Simpson Thacher recently represented Gates Industrial Corporation plc. a global manufacturer specializing in innovative power transmission and fluid power solutions. In connection with a secondary offering of ordinary shares, selling shareholders affiliated with Blackstone Inc. initiated the sale of 20,125,000 ordinary shares of Gates. Remarkably, this offering included the full exercise of the underwriters’ option to purchase an additional 2,625,000 shares, resulting in substantial proceeds of $242 million for the selling shareholders.

In addition to the secondary offering, Gates executed a $50 million share repurchase. Under a share repurchase contract with Citigroup Global Markets Inc. Gates repurchased 4,151,100 ordinary shares from the selling shareholders. This strategic move underscores Gates’ commitment to excellence in power transmission and fluid power solutions across diverse end markets, including automotive replacement, diversified industrial, industrial off-highway, industrial on-highway, and personal mobility.

The legal team at Simpson Thacher & Bartlett, led by partners 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), and Yash Rupal, Sarah Lindley, and Phoebe Adams (Tax – London), played a pivotal role in ensuring the seamless execution of this significant transaction along with Jennifer Nadborny and Bettina Elstroth (Public Company Advisory Practice).