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

Rhea-AI Summary

On February 23, 2021, Gates Industrial Corporation plc (NYSE: GTES) announced a secondary offering of 22,000,000 ordinary shares by certain stockholders affiliated with The Blackstone Group Inc. This offering includes a 30-day option for underwriters to purchase an additional 3,300,000 shares. Gates will not benefit financially as it is not offering any shares and will not receive proceeds from the sale. The offering is conducted under an effective shelf registration statement, with Citigroup and Evercore ISI as lead managers.

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• None

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• Gates will not financially benefit from the secondary offering, which raises questions about shareholder value.

DENVER, Feb. 23, 2021 /PRNewswire/ -- Gates Industrial Corporation plc (NYSE: GTES, "Gates") announced today that certain selling stockholders affiliated with The Blackstone Group Inc. have commenced a secondary offering of 22,000,000 of Gates' ordinary shares. In connection with the offering, the selling stockholders intend to grant to the underwriters a 30-day option to purchase up to 3,300,000 additional ordinary shares.

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. Barclays, Credit Suisse, Goldman Sachs & Co. LLC, Morgan Stanley, RBC Capital Markets, UBS Investment Bank and Baird are also serving as book-running managers of the offering. Nomura, Wells Fargo Securities, Guggenheim Securities and KeyBanc Capital Markets 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 will be 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.

Contacts:
Bill Waelke
(303) 744-4887
investorrelations@gates.com

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SOURCE Gates Industrial Corporation plc

FAQ

What is the purpose of Gates' secondary offering of 22 million shares?

The secondary offering allows stockholders affiliated with The Blackstone Group Inc. to sell their shares, but Gates will not receive any proceeds.

Who are the underwriters for the Gates secondary share offering?

Citigroup and Evercore ISI are the joint lead book-running managers, with several other banks serving as book-running managers.

Will Gates receive any money from the secondary offering of ordinary shares?

No, Gates will not receive any proceeds from this offering as it is conducted by selling stockholders.

Is Gates offering any of its own shares in this secondary offering?

No, Gates is not offering any ordinary shares in the secondary offering.

What is the total number of ordinary shares being offered in Gates' secondary offering?

The total number of ordinary shares being offered is 22,000,000, plus an option for an additional 3,300,000 shares.