Gates Industrial Corporation plc Prices 22.5M Share Secondary Offering at $11.75/sh By Investing.com

Gates Industrial (NYSE:) Corporation plc (GTES) announced today the pricing of the previously announced secondary offering of 22,500,000 ordinary shares (the “Offering”) by certain selling stockholders affiliated with Blackstone Inc. (the “Selling Stockholders”) at a public offering price of $11.75 per share. The Selling Stockholders have also granted the underwriters a 30-day option to purchase up to 3,375,000 additional ordinary shares. The offering is expected to close on May 23, 2023, 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 the Offering. Citigroup, Evercore ISI and Goldman Sachs & Co. LLC are serving as the joint lead book-running managers of, and as representatives of the underwriters for, the Offering. Baird, Morgan Stanley, Barclays, RBC Capital Markets and UBS Investment Bank are also serving as joint book-running managers for the Offering, BMO Capital Markets, Mizuho, Centerview Partners, KeyBanc Capital Markets, Wolfe Capital Markets and Advisory, BTIG, MUFG, Academy Securities, C.L. King & Associates, CastleOak Securities, L.P. and Cabrera Capital Markets LLC are serving as co-managers for the Offering.

In addition, as previously announced, in connection with its existing share repurchase program, Gates has entered into a share repurchase contract with Citigroup Global Markets Inc. to repurchase $250 million of ordinary shares at a price per share equal to the price paid by the underwriters in the Offering, for a total of 21,934,634 ordinary shares, and has advised Citigroup Global Markets Inc. to purchase such shares from the Selling Stockholders. The share repurchase is expected to be consummated promptly following the Offering and is conditioned upon the closing of the Offering. The closing of the Offering is not conditioned upon the consummation of the share repurchase.

The Company has filed a registration statement (including a prospectus) with the Securities and Exchange Commission (the “SEC“) for the Offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Company has filed with the SEC for more complete information about the Company and the Offering. You may get these documents for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, the Company, any underwriter or any dealer participating in the Offering will arrange to send you the prospectus if you request it by contacting Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (Tel: 800-831-9146); Evercore Group L.L.C., Attn: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, NY 10055 (Tel: 888-474-0200) or by email at ecm.prospectus@evercore.com; or Goldman Sachs & Co. LLC, Attn: Prospectus Department, 200 West Street, New York, NY 10282 (Tel: 866-471-2526) or by e-mail at prospectus-ny@ny.email.gs.com.

The Company was advised by the underwriters that, prior to purchasing the ordinary shares being offered in the Offering, on May 17, 2023, one of the underwriters purchased, on behalf of the syndicate, 100 ordinary shares at an average price of $12.00 per share in stabilizing transactions.

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.