Ex-Tomkins boss attacks 'cheap' sale of engineering group

A former boss of engineering group Tomkins has attacked a £2.9 billion takeover of the firm as "disappointing" for shareholders, it emerged today.

Greg Hutchings, who left the group after 17 years at the turn of the century, told the Times he was "amazed" at the price of the deal despite netting £31 million from his own stake in the business.

Investors yesterday approved the takeover by US private equity firm Onex Corporation and the Canada Pension Plan Investment Board by a margin of nine to one.

But Mr Hutchings told the newspaper: "I think this has been a disappointing day for shareholders."

He added: "I am amazed that some shareholders are happy to see Tomkins being sold at the bottom of the market."

The deal was also voted through despite the opposition of major investor Standard Life, which believed that the price undervalued Tomkins' future prospects.

Tomkins, which started life in 1925 as a maker of buckles and fasteners, became a global engineering and industrial firm after embarking on a major expansion programme in the 1980s and 1990s.

Major acquisitions included the US-based Gates Corporation in 1996, but the group - which employs more than 25,000 staff and operates in 23 countries - was focused on automotive engineering under current boss Jim Nicol.

In the first half of the year, Tomkins was helped by improving market conditions which boosted revenues 23% to 2.4 billion US dollars (£1.6 billion). Pre-tax profits more than doubled to 261 million dollars (£170 million).