Honeywell has announced that is has signed an agreement to acquire Intelligrated, a privately held supply chain and warehouse automation company, for $1.5 billion.
Back by the Permira funds, the purchase is about 12 times Intelligrated’s estimated 2016 earnings before interest, taxes, depreciation and amortization (EBITDA), with the company’s 2016 sales estimated to be only around $900 million.
The transaction is expected to close in the third quarter and is subject to customary closing conditions, including regulatory review.
Intelligrated will then 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.
The supply chian and warehouse solutions drive to improve productivity and lower cost for retailer’s manufacturers, and logistics providers.
The company has grown at approximately 13% over the last three years, and has a large and growing customer base of more than $5 billion, including 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 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.”