Tomkins to sell Dexter Axle division to Sterling Group for US$360 million

TORONTO – Tomkins, a company jointly owned by Onex Corp. and the Canada Pension Plan Investment Board, has signed a deal to sell its Dexter Axle division to an affiliate of the Sterling Group for US$360 million.

Onex said Thursday the deal was expected to close in the fourth quarter.

The Dexter Axle division manufactures trailer axle, brake and suspension assemblies and related replacement parts and components.

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Onex (TSX:OCX) and the CPPIB acquired Tomkins in a US$5-billion deal in September 2010. Each owns a 50 per cent interest in the company.

Last week, CPPIB agreed to pay $1.1 billion for the air distribution division of Tomkins, a diversified U.K.-based industrial company.

The division makes products used in heating, ventilating and air conditioning systems for commercial and residential buildings.

Onex said Thursday including the Dexter and air distribution deals, Tomkins will have sold seven of its non-core businesses for a total of about $2.5 billion.

The core business at Tomkins is its Gates subsidiary, a manufacturer of power transmission belts and hydraulic hoses.