Gryphon Investors (“Gryphon”), a San Francisco-based private equity firm, announced today that it has agreed to sell its portfolio company Intelligrated, a provider of automated material handling solutions, services and products, to Permira, a global private equity firm, 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, Ohio and will retain its operations throughout the United States and in Canada, Mexico and Brazil.
In partnership with CEO Chris Cole and President & COO Jim McCarthy, Gryphon successfully 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 highly strategic acquisition in June 2009 of the North American assets of FKI Logistex from Melrose plc, thereby becoming the most significant competitor in the North American market.
“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.
Chris Cole, the CEO of Intelligrated, said, “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. 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.”
Alex Earls, a Gryphon Partner and the head of Gryphon’s Business Services Group, noted, “Gryphon’s successful investment in Intelligrated underscores our commitment to building leading businesses in partnership with distinguished executives such as Chris Cole and Jim McCarthy. We have greatly enjoyed working with Intelligrated’s entire senior management team to position the company to become a truly global leader; everyone at Gryphon wishes the company continued success.”
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. The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to close in the third quarter of 2012.
About Gryphon Investors
Based in San Francisco, Gryphon Investors (www.gryphoninvestors.com) focuses on leveraged acquisitions of, and growth investments in, middle-market companies in partnership with experienced management. Having managed $1 billion of discretionary equity capital, Gryphon has an extensive track record of investing $25 to $100 million of its own capital in companies with sales ranging from $25 to $250 million. Gryphon prioritizes investment opportunities where it can form proactive partnerships with owners and executives to build leading companies, utilizing Gryphon’s capital, professional resources and operational expertise.
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