Fort Mill, South Carolina—Honeywell has signed an agreement to acquire Intelligrated for $1.5 billion from a company backed by the Permira funds.
The purchase price translates to approximately 12 times the privately held supply chain and warehouse automation leader’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 for distribution and fulfillment operations.
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 leading Fortune 500 retailers, manufacturers and logistics providers worldwide, top consumer products companies, 30 of the top 50 U.S. 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 fulfillment 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, 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.
“The Intelligrated story has always been defined by innovation and doing whatever it takes to give our customers a competitive edge,” says Chris Cole, CEO, Intelligrated. “Joining Honeywell enables us to break new ground with the most advanced levels of systems integration, intelligent software and controls, and data-driven efficiency. Our commitment to innovation and intense focus on customer service and support will continue to deliver unmatched results.”
Honeywell employs approximately 130,000 people worldwide, generating revenues of $38.6 billion in 2015. Intelligrated’s supply chain automation solutions are a complement to Honeywell’s extensive workflow performance solutions, including cloud-connected mobile worker applications, high-performance data collection hardware and other technologies to improve worker productivity.