Gryphon Investors announced today that it has agreed to sell its portfolio company Intelligrated, a provider of automated material handling solutions, services and products, to private equity firm Permira in a transaction valued at more than $500 million.
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, OH and will retain its operations throughout the United States and in Canada, Mexico and Brazil (www.intelligrated.com).
In partnership with CEO Chris Cole and President & COO Jim McCarthy, Gryphon built Intelligrated into a market leader through the combination of two synergistic acquisitions, numerous new product introductions and the hiring of leading executive talent from throughout the industry. Despite the recession of the past few years, Gryphon and management tripled the size of Intelligrated through the strategic acquisition in June 2009 of the North American assets of FKI Logistex from Melrose.
“After many years of partnership with Intelligrated’s management team, we are delighted to have signed a definitive agreement to sell Intelligrated in a successful transaction for Gryphon’s limited partners, co-investor Tudor Ventures and management shareholders. Gryphon’s unique investment thesis supported Intelligrated’s growth from a small company to North America’s leading industry competitor through aggressive organic growth initiatives, the transformative acquisition of Logistex and perseverance through two industry cycles,” said David Andrews, Gryphon’s CEO and Managing Partner.
“Gryphon has been an exceptionally strong partner for Intelligrated and has added significant value and support as the company has pursued its multi-pronged strategy to become the North American market leader with more than $500 million of revenue,” said Chris Cole, the CEO of Intelligrated. “In particular, management appreciates Gryphon’s deal-making, capital investment and integration planning leadership to consummate the Logistex acquisition during the extraordinarily difficult second quarter of 2009. The transition now from U.S.-focused Gryphon to Permira with its global capabilities is very exciting given Intelligrated’s plans to accelerate our expansion outside of North America on an organic basis and through further acquisitions.”
Gryphon Investors makes leveraged acquisitions and growth investments in middle-market companies. The firm invests from $25 to $100 million of capital in companies with sales ranging from $25 to $250 million. Sectors of interest include business services, consumer and retail, automotive, chemical, general manufacturing, health care and hotels. The firm is based in San Francisco, CA (www.gryphoninvestors.com).
Robert W. Baird & Co. served as lead financial advisor to Intelligrated and Gryphon, while Credit Suisse also acted as an advisor. Kirkland & Ellis provided legal counsel.