With Third Dividend, Gryphon More than Makes Back Its Investment in Intelligrated

We have some dividend news today.

Gryphon Investors has completed its third dividend recap of Intelligrated, an automated materials handling company based in Mason, Ohio.

Intelligrated, in February, was in the market for a $125 million term loan plus a $30 million revolver. Bank of America Merrill Lynch led the deal, reported Thomson Reuters Loan Pricing Corp. Proceeds of the transaction were used to refinance debt, LPC said at the time.

The loan will also be used to pay a $75 million dividend to shareholders, a source says.

Gryphon launched Intelligrated in 2001. The San Francisco buyout shop reportedly invested $113 million equity to form Intelligrated. In 2009, Intelligrated closed its acquisition of FKI Logistex North America.

So far, Intelligrated has paid out three dividends. In June, the company issued $80 million to shareholders via a dividend recap. Another $20 million came in 2006, a source says. “Gryphon has more than made all of its investment back,” the person says.

Since June, Intelligrated’s EBITDA has grown by more than 50% to roughly $40 million. Intelligrated will have a leverage ratio of 3.25x EBITDA after the dividend.

Separately, Church’s Chicken announced Monday that it refinanced $245 million in debt. Proceeds of the deal were used to pay a dividend to shareholders, repay the outstanding balance of existing debt and pay related fees. It was not clear how big the dividend is.

In 2009, Friedman Fleischer acquired Church’s Chicken for an undisclosed amount. The San Francisco PE firm owns a majority of Church’s Chicken.

Officials for Gryphon declined comment.