The Blackstone Group L.P. (NYSE:BX): Bold Plans For Inorganic Growth

by Tom Kelly | Friday, Mar 28, 2014 | 2305 views

Boston, MA, 03/28/2014  (usastockreports)- The Blackstone Group L.P. (NYSE:BX) is one of the biggest manager of private equity and property in the world. The company has had some great plans for its future and has been on an acquisition spree for some time now in an effort to build itself into a global enterprise with a more prominent place in the economy and market.

The firm provides a host of financial services including wealth management of private individuals and also offers advisory services wrt asset management, real estate funding etc.

Blackstone also provides corporate advisory services related to reorganization and restructuring.

Blackstone‘s acquisition spree

Blackstone Group is looking at a takeover of Gates Global Inc. in a widely discussed deal estimated at $5.5 billion. Gates Global is an industrial company which provides products and solutions in power transmission and fluid transfer. The company is putting the final touches to the deal and is in discussion with Onex Corp (OCX.TO) and the Canada Pension Plan Investment Board (CPPIB), who are the private equity owners for Gates Inc.

The bid is Blackstone’s second try to acquire Gates .The company had initially submitted a bid for $5.4 billion which had failed to materialize .The new bid is expected to touch figures between $5.5–$6 billion.

Blackstone plans to diversify

Blackstone’s increased focus on acquiring Gates Inc exhibits its bold plans to diversify and grow inorganically to touch a wider range of industries.

Blackstone is also focusing on investing on municipal and industrial water projects worldwide.

The company has set up a venture capital firm with this purpose and is planning to invest in the regions of Asia, Africa and Latin America .Spokespersons confirm that Blackstone is looking at spending millions of dollars to further its interests in these regions.

The company’s shares are currently trading at $32.4 and are treading upwards.

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