Back to top

Analyst Blog

New York-based investment manager, The Blackstone Group L.P. (BX - Analyst Report), recently closed a deal to acquire Gates Corporation for $5.4 billion. Gates Corporation is a leading industrial and manufacturing company based in Denver, Colorado.

Gates Corporation was previously acquired by equity investment firms – Onex Corp and the Canada Pension Plan Investment Board (CPPIB) in 2010. Further, in Apr 2014, Blackstone struck a deal with these firms to acquire Gates Corporation.

Gates Corporation caters to a diverse range of industries such as oil and gas, energy, mining, marine, agriculture, transportation and automotive. Thus, given the wide arena of economy it serves, the company was an attractive investment opportunity for Blackstone.

Blackstone boasts a growth trajectory driven by meaningful acquisitions. The past takeovers of GSO Capital Partners, Harbourmaster, Vivent Inc, Capital Trust and Strategic Partners have not only expanded the company’s global foothold but also boosted its asset management and servicing potential.

Similarly, we expect that the latest deal too, will support Blackstone’s top-line growth in the forthcoming quarters. Moreover, given the company’s strong balance sheet position, we foresee continued inorganic growth plans in the future.

Blackstone currently carries a Zacks Rank #3 (Hold). Some better-ranked investment managers include Kohlberg Kravis Roberts & Co. (KKR - Snapshot Report), Noah Holdings Limited (NOAH - Snapshot Report) and Woori Finance Holdings Co., Ltd. (WF). All these stocks sport a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%