GLOBAL - The Canada Pension Plan Investment Board (CPPIB) today announced the successful acquisition of UK engineering group Tomkins for £2.9bn (€3.4bn).

The deal, of which details first emerged last week, values company shares at 325p, more than 40% higher than Tomkins was trading in the days before the approach.

Pinafore Acquisitions, jointly owned by CPPIB and private equity group Onex Corporation, announced the deal this morning.

André Bourbonnais, CPPIB's senior vice-president of Private Investments, said: "Tomkins is a strong company with leading positions in its key businesses. 

"We look forward to working with Onex and the management team to continue to support the company in pursuing its growth ambitions."

A statement by CPPPIB said Tomkins chief executive James Nicol and chief financial officer John Zimmerman would continue working for the company.

CPPIB is the independently run asset manager for the $127bn (€92bn) Canada Pension Plan, into which 17m working Canadians pay contributions.

Overall, CPPIB invests 17% of assets in private investments, totalling $22bn.

The acquisition has yet to be approved by the majority of Tomkins shareholders.

It is not the first time this year a Canadian pension fund has acquired a UK company, as the $96.4bn Ontario Teachers' Pension Fund bought lottery provider Camelot for £400m in March.