Honeywell announced Friday that it will acquire privately-held supply chain and warehouse automation technology provider Intelligrated for $1.5 billion.
Honeywell says the purchase price is approximately 12 times Intelligrated's 2016 EBITDA. Intelligrated's 2016 sales are estimated to be $900 million.
Honeywell outbid Toyota for the business, which designs, manufacturers, integrates and installs complete warehouse automation solutions, software and services that result in smarter distribution and fulfillment operations. Intelligrated is based in Mason, OH.
The transaction is expected to close by the end of Honeywell's third quarter. Upon approval, Intelligrated will become part of Honeywell's Sensing and Productivity Solutions in 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 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.”
According to Honeywell, Intelligrated has grown at a compound annual growth rate of about 13 percent over the past three years and has a customer base of more than $5 billion.
Founded in 2001, Intelligrated has more than 3,100 employees in manufacturing and regional offices across the U.S., Canada, Mexico, Brazil and China.
Private equity firm Permira Advisers acquired Intelligrated in 2012 from fellow private equity firm Gryphon Investors for more than $500 million.
Last week, German forklift truck maker Kion Group AG agreed to acquire Intelligrated competitor Dematic for $3.25 billion, expanding in to automated warehouses and supply chains.
The announcement comes three days after Honeywell announced that CEO Dave Cote will step down from his post on March 31, 2017, to be succeeded by current president and COO Darius Adamczyk.