Intelligrated, a provider of automated material handling solutions, services and products, has entered an agreement to be acquired by a holding company owned by European private equity firm Permira in a transaction valued 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.
The Permira funds’ investment will support the company’s growth plans, 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.
According to John Coyle, partner and head of North America at Permira, the investment fits squarely into Permira’s strategy as it involves three of the equity investment firm’s core sectors – industrial services, consumer and technology.
The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to close in the third quarter of 2012.