Gates Announces Pricing of Secondary Offering of 22,000,000 Ordinary Shares

Rhea-AI Summary

Gates Industrial Corporation plc (NYSE: GTES) has announced the pricing of a secondary offering of 22 million ordinary shares at $15.00 per share, facilitated by certain selling stockholders associated with Blackstone Group. The offering will close on March 2, 2021, pending customary conditions. Gates will not receive any proceeds from this sale. The underwriters, including Citigroup and Evercore ISI, have an option to buy an additional 3.3 million shares within 30 days. This offering is conducted under an effective shelf registration statement.

Positive

• Secondary offering priced at $15.00 per share can provide liquidity.
• Underwriters have a 30-day option for additional shares, indicating demand.

Negative

• Gates will not receive any proceeds from the secondary offering, impacting cash flow.

DENVER, Feb. 25, 2021 /PRNewswire/ -- Gates Industrial Corporation plc (NYSE: GTES, "Gates") announced today the pricing of the previously announced secondary offering of 22,000,000 ordinary shares at a price to the public of $15.00 per share by certain selling stockholders affiliated with The Blackstone Group Inc. The selling stockholders have also granted the underwriters a 30-day option to purchase up to 3,300,000 additional ordinary shares. The offering is expected to close on March 2, 2021, subject to customary closing conditions.

Gates is not offering any ordinary shares in the offering and will not receive any proceeds from the sale of ordinary shares in this offering. Citigroup and Evercore ISI are serving as the joint lead book-running managers of, and as representatives of the underwriters for, the offering. Baird, Barclays, Credit Suisse, Goldman Sachs & Co. LLC, Morgan Stanley, RBC Capital Markets and UBS Investment Bank are also serving as book-running managers of the offering. Nomura, Guggenheim Securities, KeyBanc Capital Markets, Wells Fargo Securities, Academy Securities and Siebert Williams Shank are serving as co-managers of the offering.

The offering of these securities is being made pursuant to an effective shelf registration statement. The offering is being made only by means of a prospectus. A copy of the prospectus relating to these securities may be obtained, when available, from: Citigroup, Attn: Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (Tel: 800-831-9146); or Evercore Group L.L.C., Attn: Equity Capital Markets, 55 East 52nd Street, 36th Floor, New York, NY 10055 (Tel: 888-474-0200) or by email at ecm.prospectus@evercore.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Gates:
Gates is a global manufacturer of innovative, highly engineered power transmission and fluid power solutions. Gates offers a broad portfolio of products to diverse replacement channel customers, and to original equipment ("first-fit") manufacturers as specified components. Gates participates in many sectors of the industrial and consumer markets. Our products play essential roles in a diverse range of applications across a wide variety of end markets ranging from harsh and hazardous industries such as agriculture, construction, manufacturing and energy, to everyday consumer applications such as printers, power washers, automatic doors and vacuum cleaners and virtually every form of transportation. Our products are sold in 128 countries across our four commercial regions: the Americas; Europe, Middle East & Africa; Greater China; and East Asia & India.

Forward–Looking Statements and Information:
This press release contains forward-looking statements, which involve risks and uncertainties. Forward-looking statements include all statements that are not historical facts. In some cases you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "predicts," "intends," "trends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Forward-looking statements are based on the Company's current expectations and actual results may differ materially. Other risks and uncertainties are more fully described in the section entitled "Item 1A. Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 2021, as filed with the Securities and Exchange Commission (the "SEC"), as such factors may be updated from time to time in the Company's periodic filings with the SEC. Investors are urged to consider carefully the disclosure in our filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Gates undertakes no obligation to update or supplement any forward-looking statements as a result of new information, future events or otherwise, except as required by law.

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SOURCE Gates Industrial Corporation plc

FAQ

What is the stock symbol for Gates Industrial Corporation?

The stock symbol for Gates Industrial Corporation is GTES.

When will Gates Industrial's secondary offering close?

The secondary offering is expected to close on March 2, 2021.

How many shares are being offered in Gates Industrial's secondary offering?

A total of 22 million ordinary shares are being offered in the secondary offering.

Who are the underwriters for Gates Industrial's secondary offering?

Underwriters for the offering include Citigroup and Evercore ISI, among others.

What price per share is Gates Industrial's secondary offering set at?

The secondary offering is priced at $15.00 per share.