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Blackstone affiliates to sell 17.5 million Gates shares

Published 2024-05-15, 04:54 p/m
GTES
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DENVER - Gates Industrial (NYSE:GTES) Corporation plc (NYSE: GTES), a global manufacturer of power transmission and fluid power solutions, has announced a secondary offering of 17.5 million ordinary shares by certain selling stockholders affiliated with Blackstone (NYSE:BX) Inc. Today, these stockholders also plan to offer a 30-day option for the underwriters to purchase up to an additional 2.625 million shares.

The selling stockholders, not Gates, will receive the proceeds from the offering. Gates has stated that it will not be offering any shares or receiving any proceeds itself. Citigroup, Goldman Sachs (NYSE:GS) & Co. LLC, and Jefferies are acting as the joint lead book-running managers and representatives of the underwriters for the offering.

A registration statement, including a prospectus, has been filed with the Securities and Exchange Commission (SEC) by the company in relation to this offering. Potential investors are advised to read the prospectus for more detailed information about Gates and the offering, which can be accessed for free on the SEC's website or obtained from the underwriting banks.

Gates operates in various industrial and consumer markets, providing a wide range of products in over 130 countries. The company's offerings are critical in various applications, from harsh industrial environments to everyday consumer uses.

InvestingPro Insights

In light of the recent secondary offering announcement by Gates Industrial Corporation plc (NYSE: GTES), investors may be looking for additional data to understand the company's financial health and market performance. Here are some key metrics from InvestingPro:

  • The company's market capitalization stands at a robust $4.44 billion.
  • Gates Industrial currently has a Price to Earnings (P/E) ratio of 18.4, which adjusts slightly to 18.04 when considering the last twelve months as of Q1 2024.
  • With a Price/Earnings to Growth (PEG) ratio of 0.93 for the same period, the company might be seen as fairly valued in terms of its growth rate.

Meanwhile, InvestingPro Tips reveal some strategic moves by the management that could be of interest to investors:

  • Management's aggressive share buyback strategy suggests confidence in the company's value proposition.
  • The company is also noted for its high shareholder yield, which could be attractive to investors seeking companies with potential for capital returns.

Additionally, Gates Industrial has been performing well in the stock market, with a strong return over the last three months and a significant price uptick over the last six months. For investors seeking more detailed analysis and additional insights, there are 11 more InvestingPro Tips available at InvestingPro. To access these insights and enhance your investment strategy, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

As Gates navigates through its offerings in the market, these InvestingPro Insights can provide investors with a more nuanced understanding of the company's financial position and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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