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.
image

Sheri Carbo, southwest regional liaison for Ohio Gov. John Kasich, presents Intelligrated CEO Chris Cole with a state proclamation at Intelligrated’s headquarters groundbreaking in February.

By Modern Materials Handling Staff
June 08, 2012 - MMH Editorial

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!

Recent Entries

MDT works with Mitsubishi Electric to ensure technical competence in providing change management support for Mitsubishi Electric Automation products.

This fully updated 7th edition of the “Belt Conveyors for Bulk Materials”, is a must have source book for end users, designers, engineers, manufacturers and consultants.

While we've been focusing on the warehouse, the next evolution in e-commerce is the last mile delivery and in-store fulfillment. It could be the break brick-and-mortar has been looking for.

Motorola to focus on mission-critical communications for government and public safety customers.

Educational demonstrations and facility tours build interest in robotics engineering.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA