(Adds details from the statement, background)
April 4 (Reuters) - Canadian private equity firm Onex Corp and Canada Pension Plan Investment Board (CPPIB) said they would sell industrial conglomerate Gates Corp to private equity firm Blackstone Group LP for $5.4 billion.
Auto parts and building products maker Gates is a division of Tomkins, which Onex and CPPIB jointly bought in 2010 for about $5 billion.
The sale is expected to close later this year, the companies said on Friday.
Proceeds from the sale to the Onex Group, including co-investors, would be about $2.0 billion, of which Onex Corp's share would be about $550 million, including carried interest. CPPIB's share would be about $1.5 billion.
Reuters reported in March that Blackstone was close to a deal to buy Gates.
Denver, Colorado-based Gates, which filed for an IPO in December, sells products ranging from power transmission systems to acrylic bathtubs in more than 120 countries.
Gates generated $2.9 billion in sales and $536 million in adjusted earnings before interest, taxes, depreciation and amortization in the year ended Sept. 28, according to a regulatory filing.
Onex said in March it would sell The Warranty Group, a provider of extended warranty contracts, to an affiliate of TPG Capital Management LP for an enterprise value of about $1.5 billion.
(Reporting By Sneha Banerjee in Bangalore; Editing by Sriraj Kalluvila)