June 8, 2012
U.K.-based Permira to buy material handling company in $500 million deal.
Intelligrated, a Mason, Ohio-based provider of automated material handling products and services, said today it will be acquired by a holding company owned by the private equity firm Permira Funds. This transaction is valued at more than $500 million.
Intelligrated's management, led by founders Chris Cole and Jim McCarthy, will continue to lead the organization and maintain a significant stake in the company, Intelligrated said. The company will remain in Mason. The transaction is expected to close in the third quarter.
Intelligrated said in a statement that the capital infusion from Permira, combined with the equity firm's strong overseas connections, will allow it to expand its North American presenc and penetrate foreign markets. The acquisition will also help Intelligrated increase its product offerings and international capabilities through investment and selective mergers and acquisitions and enhance its position in aftermarket services.
In an interview today, Cole said Intelligrated was looking for a partner with the sizable capital position and global platform to "help us grow to another level."
Cole said Intelligrated would leverage Permira's resources to expand both domestically and internationally.
Between 20 percent and 30 percent of Intelligrated's overall revenue comes from outside the U.S. Canada alone accounts for about 20 percent of the company's overall revenue, according to Cole.
Permira is a London-based private equity firm with an expanding U.S. presence. Founded in 1985 with a focus on European transactions, Permira entered the U.S. in 2002 when it opened an office in New York. It opened a second office, in Menlo Park, Calif., in 2008.
"The purchase of Intelligrated is wholly consistent with our approach in North America," said John Coyle, a Permira partner and head of its North American business, "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."
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.