Brit Conglomerate Buys U.S. Auto Parts Manufacturer

01/31/96

Reuters reported that the British Conglomerate Tompkins Plc will buy the American auto parts manufacturer Gates Corp. for $1.16 billion. Gates Corp. invented the automobile fan belt in 1917. Formal merger contracts have been signed and the deal will be closed by late spring 1996.

Gates Corp., based in Denver, CO, supplies automotive transmission belts and hoses. It is expected that the merger will increase their annual sales from $1.4 billion to Tomkins $5.6 billion (1994/95).

Tomkins earnings come from sources as diverse as food and garden and leisure products. Gates' global network of factories will become a platform for Tomkins plans of international expansion and product development. The merger is subject to regulatory and tax clearance and shareholder approval.

Paul Dever -- The Auto Channel