Honeywell has signed an agreement to acquire supply chain and warehousing automation technology company Intelligrated for US$1.5 billion.
The acquisition is approximately 12 times Intelligrated’s estimated 2016 EBITDA of US$900 million, although the company has grown at a CAGR of around 13 per cent over the last three years.
Honeywell plans to close the acquisition quickly, aiming for the deal to by finished by the end of the third quarter, after which Intelligrated will become part of its Sensing and Productivity Solutions business under its Automation and Control Solutions business
“E-commerce continues to grow at an unprecedented rate and customer demands for faster delivery times have created a need for warehouse, logistics and fulfilment solutions that can increase productivity and lower costs for our customers,” Alex Ismail, CEO of Honeywell Automation and Control Solutions, said.
“This acquisition fits with our vision for a connected industrial company and a connected worker.”
John Waldron, president of Honeywell Sensing and Productivity Solutions, added, “Intelligrated’s leading supply chain automation solutions are a fantastic complement to Honeywell’s portfolio of industry-leading workflow performance solutions including cloud-connected mobile worker applications, high-performance data collection hardware, and other technologies to improve worker productivity
“The leadership team at Intelligrated is top-notch and we look forward to working with them to expand our presence globally.”
Intelligrated designs, manufactures, integrates and installs complete warehouse automation solutions, software and services for more efficient distribution and fulfilment operations.