By Nick Gilbert
The European private equity firm, Permira, has entered into an agreement to acquire Intelligrated, a provider of automated material handling products, services and solutions.
The financial transaction is valued at more than $500 million. The investment of the Permira funds’ through a holding company will help Intelligrated in increasing its market penetration in North America, its global capabilities, product offerings and global partnerships. It will aid in increasing its services through mergers and acquisitions and further investment.
Intelligrated provides design, manufacture and installation of material handling automation solutions for a wide range of markets, including consumer product manufacturing, distribution, warehousing and the postal and parcel markets. It is headquartered in Mason, Ohio and will continue in the same headquarters after the acquisition. It provides solutions to markets in Canada, Brazil and Mexico. Various types of solutions, such as robotics, sortation systems, conveyor systems, order fulfillment systems, palletizers, superior machine controls and software for controlling warehouses are also provided by the company.
The company is expanding its facilities in Mason, which will help it provide sophisticated solutions to high-end customers.
The founders of Intelligrated, Jim McCarthy and Chris Cole, will continue to be part of the company and will lead the company. They will continue to hold a considerable stake in Intelligrated.
The acquisition is expected to be completed in 2012 third quarter, after acquiring the necessary regulatory approvals.
The lead financial advisor to the transaction was Morgan Stanley and the co-advisor was RBC Capital Markets.