Gryphon Investors’ Intelligrated Adds FKI
Private equity, perhaps hampered by inability to secure debt for full-scale buyouts, has led to developing existing portfolio assets.
May 29, 2009
Gryphon Investors’ Intelligrated Inc., a logistics solution firm, will integrate FKI Logistex Holdings into its existing platform.
The deal is for $40 million plus the assumption of certain liabilities; the deal is anticipated to complete in June. As of the end of calendar year 2008, Logistex had gross assets of $104 million and liabilities of $77 million.
The deal comes at a time when private equity increasingly seems to be making add-on plays to support existing portfolio companies. Gryphon has owned Intelligrated since 2002 and the buy of Tudor Ventures’ former company FKI Logistex marks its second add-on transaction since buying the solutions firm.
“It is extremely difficult to finance new acquisitions,” David Andrews, president and managing general partner of Gryphon Investors. Andrews said Intelligrated may continue to make acquisitions to support its development, despite that Gryphon has owned the company for more than seven years.
Other add-on transactions have supported private equity at a time when deal flow has been virtually non-existent. J.F. Lehman, in January, added onto Atlantic Marine Holding Co. with Boston Ship Acquisition and Millennium Industrial and Marine Solutions, in separate deals. Late last year, TPG Capital and Silver Lake Partners portfolio company Sabre Holdings acquired London e-commerce software provider EB2 International.
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