Thomas H. Lee Partners (THL) has agreed to acquire AutoStore, a provider of cube storage systems including robotics and software, from EQT which acquired the company in January 2017. Members of AutoStore’s management team and EQT will continue to hold minority positions in the company.
AutoStore’s systems are used to maximize efficiencies in warehouses by creating dense storage configurations accessed by robots. The company has installations in 350 warehouses with 11,000 robots in 28 countries in a range of industries and end-markets. AutoStore’s high-speed robots, modular and flexible cube storage grid systems, and controls software enable its customers to achieve nearly four times the inventory storage relative to manual alternatives, with enhanced inventory picking speed and accuracy.
AutoStore uses third-party system integration partners for design, installation and systems servicing. The company was founded in 1996 and is headquartered in Nedre Vats, Norway, with production facilities in Koszalin, Poland (www.autostoresystem.com).
During EQT’s ownership term, AutoStore’s revenues have quadrupled, EBITDA has increased by 4.5 times and the employee base, including the R&D department, has more than doubled. “The AutoStore and EQT partnership has been excellent,” said AutoStore CEO Karl Lier. “EQT has played a critical role from A to Z and has actively supported us in overperforming the company’s ambitious targets set in 2016. We look forward to continuing our growth journey with our new partner THL and are happy that EQT has rolled over some of its proceeds.” EQT will maintain a 10% equity interest in AutoStore in partnership with THL.
According to THL, AutoStore is the most deployed provider of grid-based, high-density goods-to-person systems, participating in the global automated storage and retrieval systems (ASRS) market. Global trends, including an increasing focus on automation and robotization, urbanization and need for space-efficient solutions, as well as eCommerce demands requiring increased speed and accuracy, are all expected to continue to fuel AutoStore’s growth globally.
In 2019, AutoStore launched its Black Line series of retrieval robots which generate up to 140 percent higher throughput compared to its predecessors. Through Black Line, AutoStore expects to expand its addressable market by 40 percent.
“We are thrilled about the opportunity to partner with the AutoStore team,” said Jim Carlisle, a managing director at THL. “Through its grid-based technology and proprietary software platform, AutoStore has demonstrated a superb reputation in the marketplace underpinned by its visionary engineering and R&D talent, impressive global distribution network, and exceptional product quality. We are excited to invest behind Karl and his team and look forward to supporting AutoStore’s rapid growth.”
“Today’s announcement marks a great step forward into the next phase of our company’s growth,” added Mr. Lier. “We are excited to partner with THL, who have deep industry expertise and financial and operational resources to help accelerate AutoStore’s overall growth strategy, including our continued geographic expansion.”
THL was founded in 1974 and is one of the oldest private equity investment firms in the United States. Industries of interest include consumer and retail; healthcare; media and information services; and business and financial services. Since its founding, Boston-based THL has raised over $25 billion of equity capital, acquired over 140 portfolio companies and completed over 400 add-on acquisitions (www.thl.com).
“EQT has been proud to support AutoStore’s mission to become one of the leading logistic technology providers globally. We are highly impressed by the innovation spirit and R&D efficiency in AutoStore and the result-oriented culture,” said Anders Misund, a partner at EQT Partners. “Management has done an outstanding job in accelerating growth and solidifying its global presence in the ASRS market and EQT is happy to remain invested in the coming years”.
EQT invests in medium-sized companies operating in a range of industries in Northern Europe, Eastern Europe, China and the US. Sectors of interest include infrastructure, industrials, consumer goods & retail, services, technology, media and telecom, energy, environment, and healthcare. The firm was founded in 1994 in Sweden and has offices in 14 countries across Europe, Asia and North America
This transaction is expected to close during the third quarter of 2019.
© 2019 Private Equity Professional | June 20, 2019
