Thomas H. Lee Partners has agreed to recapitalize portfolio company Louisville, Kentucky-based Material Handling Systems, a provider of intelligent material handling systems for logistics and ecommerce companies. No financial terms were disclosed. PricewaterhouseCoopers Corporate Finance LLC provided financial advice to MHS on the transaction while RBC Capital Markets did likewise for THL.
Material Handling Systems, Inc. (“MHS” or the “Company”), a leading provider of advanced parcel sortation systems engineering and equipment, announced today that it has entered into an agreement to recapitalize in partnership with Thomas H. Lee Partners, L.P. (“THL”), making THL the majority owner of MHS. Terms of the transaction were not disclosed and it is subject to customary closing conditions.
Founded in 1999 and owned by its employees, MHS has grown to become a leading provider of intelligent material handling systems to the top logistics and e-Commerce companies in the world. MHS also owns a vertically-integrated equipment manufacturing business, Santa Rosa Systems (“SRS”). Given the significant increase and acceleration of demand for advanced automation infrastructure – especially in the e-Commerce industry – MHS sought a strategic and financial partner to invest in the Company’s substantial future growth prospects, including the potential for product and geographic expansion. As a partner, THL will support MHS’s strong momentum by contributing expertise and bringing financial and operational resources, thereby allowing the Company to enhance its capabilities and offerings and accelerate its overall growth strategy.
“We are excited to announce our new partnership with THL, whose extensive experience in growing successful businesses will prove valuable as we continue to serve our customers’ growing demand for automated parcel sortation systems,” said Tony Mouser, Chief Executive Officer of MHS. “We have always been a customer-focused company, and we chose THL as our new partner given our shared vision to better serve our customers’ needs while creating opportunities for our employees.”
“We are thrilled about the opportunity to partner with Tony and the talented team at MHS and SRS,” said Jim Carlisle, Managing Director at THL. “MHS is an exceptional company, driven by its commitment to engineering talent, technological innovation, and reliable, on-time delivery of advanced systems, software and equipment to its customers. We are excited to invest in the expansion of MHS as the company continues to deliver on its promise of providing best-in-class solutions for its customers.”
PricewaterhouseCoopers Corporate Finance LLC acted as financial advisor and Baker McKenzie acted as legal advisor to MHS. RBC Capital Markets acted as financial advisor and Kirkland & Ellis LLP acted as legal advisor to THL.
About Material Handling Systems, Inc.
Founded in 1999 and headquartered in Louisville, Kentucky, Material Handling Systems, Inc. has drawn from its employees’ experience and expertise to become one of the leading material handling system integrators in North America. The Company provides the parcel industry with best-in-class design, implementation, and maintenance of turnkey material handling sortation and distribution systems. For more information, please visit https://www.mhsinc.net/.
About Thomas H. Lee Partners
Thomas H. Lee Partners, L.P. (“THL”) is one of the world’s oldest and most experienced private equity firms. The firm invests in growth-oriented businesses, headquartered principally in North America, across three broad sectors: Consumer & Healthcare; Media, Information Services and Technology; and Business & Financial Services. Since its founding in 1974, THL has raised over $20 billion of equity capital and invested in more than 130 businesses with an aggregate purchase price of more than $150 billion. THL strives to build great companies of lasting value and generate superior investment returns. For more information, please visit www.thl.com.