Honeywell announced Tuesday that it has completed its $1.5 billion acquisition of Intelligrated, a privately held leader in supply chain and warehouse automation solutions, which was previously announced in July.
Intelligrated’s supply chain and logistics solutions include automated storage and retrieval systems, palletizers, robotics solutions, software and tote-handling systems. The business will be integrated into Honeywell Safety and Productivity Solutions and led by Intelligrated’s co-founder Chris Cole, who will report directly to Waldron.
Honeywell Safety and Productivity Solutions provides technology that improves enterprise performance, enhances workplace safety and enables greater product design innovation. Customers rely on Honeywell’s connected solutions to increase worker productivity, enrich operational intelligence with data-driven insights and provide real-time safety intelligence.
Honeywell announced in July that it has signed an agreement to acquire privately held, supply chain and warehouse automation vendor 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.
Intelligrated designs, manufactures, integrates and installs complete warehouse automation solutions, software and services that result in smarter distribution and fulfillment operations. Its supply chain and warehouse solutions drive improved productivity and lower costs for retailers, manufacturers, and logistics providers around the world.
The company has grown at a compound annual growth rate (CAGR) of approximately 13 percent over the past three years, faster than the industry overall. Intelligrated has a large and growing customer base of more than $5 billion, including global retailers, manufacturers and logistics providers, top consumer products companies, 30 of the top 50 U.S. retailers, and half of the top 100 Internet retailers.
“With the continued growth of e-commerce, retailers and supply chain companies need a range of enterprise solutions to enhance their operational accuracy, efficiency and safety,” said John Waldron, president and CEO, Honeywell Safety and Productivity Solutions. “We welcome the talented Intelligrated team to Honeywell and look forward to bringing together their innovative automated material handling solutions and software with our data capture and workflow performance technology. Our offering will enable businesses to harness the power of the Industrial Internet of Things to optimize productivity and increase fulfillment speed.”