Permira is to sell Intelligrated, a North American-based advanced fulfilment solutions provider, to Honeywell in an all-cash transaction for USD1.5 billion.
Richard Carey, a Permira partner and co-head of the firm’s industrials sector team, says: “This was an incredibly successful partnership for Intelligrated and the Permira funds and we are proud of all that the Company has achieved. This investment is a prime example of our strategy to identify growth themes – here, the need for supply chain solutions to support the tremendous growth of e-commerce and home delivery – find the right companies and then work closely with management to bolster their market-leading positions.
“This investment was also a great opportunity to leverage our global platform as well as our expertise backing high growth industrial and software businesses. It has been a great pleasure working with the Intelligrated team and we wish them continued success as part of Honeywell.”
The Permira funds first invested in Intelligrated with the belief that continued e-commerce growth and its derivatives would have huge implications for traditional fulfilment systems, parcel and store-level productivity. With a culture of customer service, Intelligrated was, and continues to be, well-positioned to benefit from this disruption as its customers continue to invest in advanced automation to keep pace with this change.
Chris Cole, chief executive officer of Intelligrated, says: “Permira has been an instrumental partner in helping us execute on our growth plan. With their support, we made great strides in seizing the tremendous opportunities available to us from the growth of e-commerce and home delivery, by significantly growing our sales, revenue and earnings, adding major new customers, developing new capabilities both organically and through acquisitions, and expanding operations in emerging markets. We wish the Permira team well and look forward to our next chapter as part of Honeywell.”
The Permira funds have a long track record of successfully investing in industrial companies around the world. Current industrial investments include chemical manufacturer CABB, micro-irrigation specialist Netafim, and containment solutions business Bakercorp.
Centerview Partners acted as financial advisers to the Permira funds and Skadden, Arps, Slate, Meagher & Flom acted as legal adviser.
The transaction is expected to close by the end of the third quarter, subject to customary closing conditions, including regulatory review.
