While the material handling and logistics community is still sorting out the implications of last week’s announcement that lift truck manufacturer Kion Group plans to acquire Dematic for $2.1 billion, yet another blockbuster deal has gone down just before the Independence Day holidays. Industrial conglomerate Honeywell has signed an agreement to acquire privately-held supply chain and warehouse automation provider Intelligrated for $1.5 billion from a company backed by the Permira funds.
The purchase price translates to approximately 12 times Intelligrated’s estimated 2016 earnings before interest, taxes, depreciation and amortization (EBITDA). The company’s 2016 sales are estimated to be approximately $900 million.
The transaction is expected to close by the end of the third quarter, subject to customary closing conditions, including regulatory review. Upon approval, Intelligrated will be part of Sensing and Productivity Solutions (S&PS) in Honeywell’s Automation and Control Solutions business.
Intelligrated designs, manufactures, integrates and installs complete warehouse automation solutions, software and services that help improve companies’ distribution and fulfillment operations. The company has grown at a compound annual growth rate (CAGR) of approximately 13% over the past three years. Intelligrated has a customer base of more than $5 billion, including Fortune 500 retailers, manufacturers and logistics providers worldwide and consumer products companies.
“E-commerce continues to grow at an unprecedented rate and customer demands for faster delivery times have created a need for warehouse, logistics and fulfillment solutions that can increase productivity and lower costs for our customers,” says Alex Ismail, president and CEO of Honeywell Automation and Control Solutions. “This acquisition fits with our vision for a connected industrial company and a connected worker.”
Intelligrated’s supply chain automation solutions will complement Honeywell’s portfolio of workflow performance solutions, including cloud-connected mobile worker applications, high-performance data collection hardware, and other technologies to improve worker productivity, adds John Waldron, president of Honeywell Sensing and Productivity Solutions.
Intelligrated, headquartered in Mason, Ohio, employs more than 3,100 people in manufacturing and regional offices located across the United States, Canada, Mexico, Brazil and China. The company was founded in 2001 and grew quickly via organic growth and strategic acquisitions.
Honeywell Sensing and Productivity Solutions is a provider of enterprise and workflow performance solutions, custom-engineered sensors, switches and controls.