Gates, which makes power transmission belts, fluid hoses and other industrial equipment, filed in December for an initial public offering of stock as Toronto-based Onex and Canada Pension Plan planned an exit of their investment. Denver-based Gates, led by Chief Executive Jim Nicol, posted sales of about $2.9 billion for the year through September.
Gates sells products to customers including
"It was a tough decision to sell Gates," Seth Mersky, an Onex senior managing director, said in a statement. "We don't see many industrial businesses with its global brand recognition."
The acquisition will be New York-based Blackstone's biggest private-equity deal since taking over
Private-equity deals globally stand at $164.8 billion this year, a 48% increase from the same period last year, according to data compiled by Bloomberg.