Honeywell to acquire Intelligrated for $1.5 billion

Honeywell has announced it has signed an agreement to acquire privately held, supply chain and warehouse automation company Intelligrated for $1.5 billion. The purchase price translates to approximately 12 times Intelligrated’s estimated 2016 earnings before interest, taxes, depreciation and amortisation (EBITDA). The company’s 2016 sales are estimated to be approximately $900 million.

Upon regulatory 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 result in smarter distribution and fulfilment operations. Its supply chain and warehouse solutions are designed to drive improved productivity and lower costs for retailers, manufacturers and logistics providers. Intelligrated has a large and growing customer base of more than $5 billion, including leading Fortune 500 retailers, manufacturers and logistics providers worldwide, top consumer products companies, 30 of the top 50 US retailers and half of the top 100 internet retailers.

“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,” said 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 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,” said John Waldron, president of Honeywell Sensing and Productivity Solutions. “The leadership team at Intelligrated is topnotch and we look forward to working with them to expand our presence globally.”

Intelligrated, headquartered in Mason, Ohio, employs more than 3100 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.