TORONTO — The Canada Pension Plan Investment Board (CPPIB) announced it will pay $1.1 billion for the heating and air conditioning business of Tomkins Ltd. Canadian private equity firm Onex and CPPIB acquired Tomkins in 2010. The company has since reduced its debt by selling five non-core businesses for total proceeds of almost $1 billion.

“With this acquisition, we will acquire directly a significant majority interest in Tomkins’ air distribution division, including the portion that we don't currently own indirectly through Tomkins,” said Andre Bourbonnais, senior vice president of private investments, CPPIB, in a statement.

Onex representatives said the sale of the Tomkins unit puts its disposition program ahead of schedule.

“We can now focus our efforts on building value in the core Gates Corporation business with a significantly de-levered capital structure,” said Seth Mersky, managing director, Onex.

The HVAC unit deal is expected to close prior to the start of 2013.

Publication date: 12/24/2012