Honeywell to Buy Intelligrated, Boosting Automation Portfolio
July 01 2016 - 11:10AM
Dow Jones News
Honeywell International Inc. on Friday said it agreed to acquire
fulfillment-solutions provider Intelligrated for $1.5 billion in
cash, boosting its supply-chain and warehouse automation
portfolio.
The move comes as retailers have seen their consumers move
online and have tried to retool their supply chains for
e-commerce.
"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,
chief executive of Honeywell Automation and Control Solutions.
Intelligrated—which Honeywell is buying from a company backed by
global investment firm Permira—designs, makes and installs
warehouse-automation solutions and software. The company has
customers such as United Parcel Service Inc., Amazon.com Inc. and
Nordstrom Inc.
Intelligrated, based in Mason, Ohio, was founded in 2001 and
currently employs more than 3,100 people in the U.S., Canada,
Mexico, Brazil and China. Honeywell said the transaction, subject
to closing conditions such as regulatory approval, is expected to
close by the end of the third quarter.
Honeywell said earlier this week that Chief Executive Dave Cote
would step down at the end of March, capping a 14-year tenure.
Honeywell stock climbed 1%, to $117.51, in morning trading in
New York and is up 14% from a year ago.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
July 01, 2016 10:55 ET (14:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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