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Article: GATES, TOMKINS CLOSE DEAL\LONDON CONGLOMERATE PAYS $1.1 BILLION FOR RUBBER MAKER.(BUSINESS)
- Article from:
- Rocky Mountain News (Denver, CO)
- Article date:
- January 31, 1996
- Author:
CopyrightCOPYRIGHT 1996 Rocky Mountain News. All rights reserved. Reproduced with the permission of Dialog LLC by Gale Group. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: KERRI S. SMITH ROCKY MOUNTAIN NEWS STAFF WRITER
Gates Rubber Co. on Tuesday concluded weeks of contract negotiations with a definitive deal to be acquired by Tomkins PLC of London.
The purchase price - first reported in December in the Rocky Mountain News - was $1.1 billion. Analysts called it "fair."
"Gates was neither overpriced nor underpriced," said Ian Rennardson of Credit Lyonnais Securities in London. "Gates is producing margins of between 6% and 8%, and that is something Tomkins won't find it too difficult to improve on."
The London-based conglomerate also confirmed that Charles C. Gates, Gates chairman, will join its ...