Crestview Partners is set to make 7.5x its money on the sale of JR Automation Technologies after a four-year hold, sources familiar with the transaction told Buyouts.
On April 23, Crestview said it would sell JR to Hitachi for $1.4 billion. The firm expects to close the deal in the second half.
Crestview acquired JR for nearly $200 million in March 2015, industry sources said. The firm invested in the company out of its third fund, which closed on more than $3 billion in February that year.
The deal valuation equals 14x the company’s 2019 Ebitda, the sources said.
JR Automation is the Holland, Michigan, provider of intelligent automated manufacturing and distribution technology services.
The company designs, builds and programs advanced automation to solve customers’ operational and productivity challenges.
The firm completed four add-ons to JR’s platform, including Esys Automation, Setpoint Systems and Setpoint, and Doerfer Corp’s automation systems group made up of Advanced Automation, Wright Industries, FSA Systemes D’Assemblage, and more.
Crestview Partners, based in New York with nearly $9 billion in capital, focuses on middle-market companies across financial services, media, industrials, energy and other.
Goldman Sachs and B of A Merrill Lynch advised JR Automation and Crestview Partners on the process. Mitsubishi UFJ Morgan Stanley advised Hitachi on the transaction.
Action Item: Contact JR Automation global HQ at +1 616-399-2168.