Tuesday, July 5, 2016

Supply Chain and Warehouse Automation Specialist Snapped Up by Technology Group

US Giant Acquires Logistics Workflow Solutions Provider
Shipping News Feature
US – Diversified technology and manufacturing group Honeywell has signed an agreement to acquire privately held, supply chain and warehouse automation company Intelligrated, previously backed by investment group Permira, for $1.5 billion. The purchase price translates to approximately 12 times Intelligrated’s estimated 2016 EBITDA. The company’s 2016 sales are estimated to be approximately $900 million and carries a portfolio of warehouse automation, order fulfilment and software solutions with an extensive presence in North American e-commerce, retail, food and beverage markets.

The transaction is expected to close by the end of the third quarter, subject to customary closing conditions, including regulatory review. Upon approval, Intelligrated co-founders Chris Cole and Jim McCarthy will continue to serve in a leadership role and the company will become 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. Its supply chain and warehouse solutions aim to 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% over the past three years, faster than the industry overall. Intelligrated has a large and growing customer base including leading Fortune 500 retailers, manufacturers and logistics providers worldwide, top consumer products companies, 30 of the top 50 US retailers, and half of the top 100 Internet retailers.

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 Permira funds invested in Intelligrated in 2012 with the belief that continued e-commerce growth and its derivatives would have huge implications for traditional fulfilment systems, parcel and store-level productivity. Chris Cole, CEO of Intelligrated, said:

“The Intelligrated story has always been defined by innovation and doing whatever it takes to give our customers a competitive edge. 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 warehouse automation systems are complementary to Honeywell’s extensive workflow performance solutions and John Waldron, President of Honeywell Sensing and Productivity Solutions, commented:

“Intelligrated’s leading supply chain automation solutions are a fantastic complement to Honeywell’s portfolio of industry-leading workflow performance solutions including cloud-connected mobile worker applications, high-performance data collection hardware, and other technologies to improve worker productivity. The leadership team at Intelligrated is top-notch and we look forward to working with them to expand our presence globally.”