Honeywell to acquire automation technology company Intelligrated

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 be 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,” said Alex Ismail, CEO of Honeywell Automation and Control Solutions.

“This acquisition fits with our vision for a connected industrial company and a connected worker,” he added.

Intelligrated designs, manufactures, integrates and installs complete warehouse automation solutions, software and services for more efficient distribution and fulfilment operations.