Honeywell to Acquire Intermec for $600 Million

The combination fills a niche for Honeywell in automatic identification and data collection applications.

Honeywell International Inc., a diversified technology and manufacturing company, will acquire Intermec for $10.00 per share in an all-cash transaction valued at approximately $600 million, net of cash and debt acquired. Intermec, provider of data capture and information management technology, fills a niche for Honeywell in pursuing opportunities in tracking and tracing applications.

“The addition of Intermec is a natural extension to our scanning and mobility business, which was established through the successful acquisitions of Hand Held Products, Metrologic and EMS,” said Honeywell Automation and Control Solutions President and Chief Executive Officer Roger Fradin. “While Intermec strengthens our core scanning and mobile computing business, it opens up entirely new opportunities in RFID, voice solutions and barcode and receipt printing segments that we currently don’t serve. It expands our product offerings and strengthens our intellectual property portfolio putting us in position to be a technology leader for years to come in the highly attractive AIDC industry.”

"We are pleased that Honeywell recognizes and values the capabilities as well as the strategic potential of our business," said Allen J. Lauer, Intermec chairman and interim CEO. "Our Board conducted a thoughtful and comprehensive strategic review of Intermec's business with the goal of determining the best possible overall outcome for our stakeholders. The agreement with Honeywell not only maximizes value for our stockholders, it combines our history of innovation and engineering expertise, global reach and leading products and solutions with the significant global scale and resources of Honeywell."

Under the terms of the agreement, which has been approved by both companies' Boards of Directors, Honeywell will acquire all of the outstanding common shares of Intermec for $10.00 per share in cash. The transaction represents a 48% premium to Intermec's closing stock price on November 1, 2012, the last trading day prior to Intermec announcing it had retained BofA Merrill Lynch. The transaction, which is subject to the approval of Intermec stockholders, regulatory approvals and customary closing terms and conditions, is expected to close by the end of the second quarter 2013.

In light of this announcement, Intermec is suspending its previously announced search for a permanent Chief Executive Officer.

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