Fortna to be sold from one private equity firm to another

The Atlanta-based systems integrator Fortna will be sold from one private equity firm to another in a deal to reduce the company’s debt by $1.8 billion and raise $150 million in cash, allowing it to continue operating while reducing its interest payments. Under terms of the proposed deal, the company will be acquired by Los Angeles-based investment firm Ares Management and other lenders. Fortna had previously been acquired by the private equity firm Thomas H. Lee Partners in 2019, and then merged in 2022 with another firm in Thomas H. Lee’e portfolio, the fellow systems integrator MHS Global. In an announcement, Fortna today said “Majority ownership will transition through the recapitalization to the company’s existing lenders.” Fortna said it expects to consummate the recapitalization transaction in the coming weeks, subject to the satisfaction of standard closing conditions. After the deal is completed, the recapitalization transaction will have no impact or impairment on the company’s vendors, suppliers, and business partners. “Today’s agreement marks an important milestone for our company,” Fortna CEO Rob McKeel said in a release. “Following this transaction, we will have a stronger balance sheet and enhanced financial flexibility. Additionally, with the support of new ownership that shares our long-term vision, we will be well positioned to execute our strategy with discipline and confidence.” Until the deal closes, Fortna said it will continue to operate as normal and remains focused on delivering for customers and advancing projects on time. “As we look ahead, our priorities remain clear. We will continue helping our customers optimize complex distribution and fulfillment operations with mission-critical solutions, expertise and innovative approaches. We are grateful for the continued trust and support of our customers and business partners and look forward to our continued collaboration,” McKeel said.