Permira funds to acquire Intelligrated

Leading automated material handling solutions provider has entered agreement to be acquired by a holding company in a transaction at a valuation in excess of $500 million.

By ·

Intelligrated, a leading North American-based provider of automated material handling solutions, services and products, announced today that it has entered an agreement to be acquired by a holding company owned by the Permira funds in a transaction at a valuation in excess of $500 million. Intelligrated’s management, led by founders Chris Cole and Jim McCarthy, will maintain a significant stake in the company as part of the transaction and will continue to lead the company.

Intelligrated designs, manufactures and installs complete material handling automation solutions for the warehousing, distribution, consumer product manufacturing, postal and parcel markets. Solutions include conveyor systems, sortation systems, palletizers and robotics, order fulfillment systems, warehouse control software and advanced machine controls. Intelligrated will remain headquartered in Mason, Ohio, a suburb of Cincinnati, and has operations throughout the United States and in Canada, Mexico and Brazil.

Intelligrated is No. 10 on Modern’s Top 20 Systems Suppliers list reporting $435 million in 2011.

The Permira funds’ investment will support the company’s growth opportunities, including further penetration of its customer base in North America, emerging markets expansion in partnership with its global customers, increased product offerings and global capabilities through investment and selective M&A, and an enhanced focus on aftermarket services.

“Intelligrated is well-positioned to capitalize on the growing demands on companies to increase supply chain efficiency and better serve the evolving needs of their customers,” said Richard Carey, Partner and co-Head of the Global Industrials Group at Permira.  “Already a market leader, the company is continuing to grow, as evidenced by the ongoing expansion of the facilities in Mason, which will enhance Intelligrated’s ability to provide advanced solutions for its blue-chip customers.”

John Coyle, Partner and Head of North America at Permira commented, “This investment fits squarely into the Permira funds’ strategy.  It involves a team working across three of our core investment sectors – industrial services, consumer and technology – and is wholly consistent with our approach in North America, which is to find leading companies in the U.S. who can utilize our unique ability to leverage our deep ties in Europe, Asia and Latin America to realize their international potential.  We look forward to backing Intelligrated’s highly successful management team as the company enters the next stage of its growth plans.”

“This is a very exciting new chapter for our company, and we are thrilled that a world-class investment firm such as Permira has recognized the growth potential in our business,” said Chris Cole, CEO of Intelligrated.  “This is a strong endorsement for Intelligrated and our highly talented workforce, and we look forward to taking advantage of the unique global perspective and industry insight that the Permira funds will bring. We are pleased that they recognize our ability and commitment to providing mission-critical, high-speed automated material handling systems, software and service, and believe they are the ideal partners to help us to continue on our strong growth trajectory.”

The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to close in the third quarter of 2012.

Morgan Stanley & Co. acted as lead financial advisor to the Permira funds and RBC Capital Markets acted as co-advisor.  Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to the Permira funds.


Subscribe to Modern Materials Handling Magazine!

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Latest Whitepaper
The Overlooked Competitive Advantage: Connected Teams
57% of surveyed manufacturers believe they could reduce downtime by 10-30% by unifying their workgroup communications. What does a minute of downtime cost you?
Download Today!
From the January 2018 Modern Materials Handling Issue
PFS built one of the largest and most automated AS/RS freezers in the world in Washington state. Next up is a new design for automation. Automated Storage/ Automated Retrieval System, Cold Storage.
Lift Truck Series Part 1: Lift truck technology connects pickers to productivity
Breaking Through On Yard Visibility
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Emerging Technologies for Your Distribution Center
Come get an insider's view of the latest technologies for inside your Distribution Center. You'll learn which technologies are being piloted, which are having success and moving from concept to implementation and into production on the maturity scale, and what's coming on the horizon.
Register Today!
EDITORS' PICKS
Trinchero Family Estates: Pallet handling in the vineyard
The second-largest family-owned wine company in the world turns to automated pallet handling and...
System Report: Rocky Brands Sees the Light
Confronting an aging materials handling system and new channels of business with new customer...

Top 20 industrial lift truck suppliers, 2017
The top lift truck suppliers list is changing with industry acquisitions causing a dramatic...
Lodge Manufacturing: Distribution Cast in Iron
In a new facility, iPhones and a new WMS allowed cookware manufacturer Lodge to double its business...