TH Lee Is Said to Mull $3 Billion Material Handling Systems Sale

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Buyout firm Thomas H. Lee Partners is considering a sale of Material Handling Systems Inc. that could value the logistics company at about $3 billion, according to people familiar with the matter.

The Boston-based private equity firm is working with advisers to examine strategic options for the company, known as MHS, said the people, who asked not to be identified because they weren’t authorized to speak publicly. MHS, which generated about $200 million in earnings before interest, taxes, depreciation and amortization in 2020, is expected to attract interest from other private equity firms and peers, the people said.

A final decision on pursuing a sale hasn’t been made and TH Lee could decide to keep the business.

A spokesperson for TH Lee declined to comment. A representative for MHS didn’t immediately respond to requests for comment.

TH Lee took a majority stake in Louisville, Kentucky-based MHS as part of a recapitalization in 2017. The buyout group has backed MHS management, led by co-founder and Chief Executive Officer Scott McReynolds, to expand the business, most recently with the purchase of the conveyor assets of TGW Logistics Group Gmbh for an undisclosed sum in January, according to a statement.

MHS, founded in 1999 and previously employee owned, offers corporate clients a range of logistics services including the use of light-guided systems for order fulfillment and autonomous robots for mapping plants and transporting products, according to the company’s website.

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