Permira has sold Intelligrated, which offers automated material handling equipment, software and services, to Honeywell in an all-cash transaction valued at $1.5 billion, generating a 5X return on its investment, according to a person familiar with the matter
The global investment firm purchased the company in 2012 from Gryphon Investors for $500 million. Since then, the company has refinanced its debt several times. The sale transaction is expected to close by the end of the third quarter.
Permira invested in Intelligrated out of its fourth fund, Permira IV, which closed in 2006 on €9.6 billion, according to PEI data. That fund faced significant challenges during the global financial crisis.
It mainly suffered from a liquidity crisis of one of its limited partners who could not meet capital calls, and as a result the fund was written down in value to as low as 0.5X at one point, according to documents from the Oregon Public Employees' Retirement System.
The fund generated a 6.5 percent net internal rate of return and had a 1.3X investment multiple as of September, according to CalPERS.
LPs in Permira IV include the California Public Employees' Retirement System, the California State Teachers' Retirement System, Canada Pension Plan Investment Board, the Fire and Police Pension Association of Colorado, the Finnish Local Government Pensions Institutions, AlpInvest Partners, the University of Michigan, the W.K. Kellogg Foundation and Rockefeller Brothers Fund, according to PEI.
Permira is currently raising Permira VI, which has a target of €6.5 billion and a €7.25 billion hard-cap, according to documents from the Oregon Public Employees' Retirement System, which committed to the fund earlier this year. Other investors in the fund include the Oregon State Treasury and the Washington State Investment Board.