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Honeywell International Inc. (HON - Free Report) recently completed the acquisition of leading supply chain and warehouse automation firm Intelligrated for $1.5 billion. Post-integration, Intelligrated will form an integral part of Honeywell's Sensing and Productivity Solutions (S&PS) unit in its Automation and Control Solutions business.
The Aquiree
Based in Mason, OH, Intelligrated is a material handling automation and software engineering company. The supply chain and logistics solutions of Intelligrated include automated storage and retrieval systems, palletizers, robotics solutions, software and tote-handling systems. It operates across the United States, Canada, Mexico, Brazil and China, and employs over 3,100 people.
Intelligrated has grown at a CAGR of approximately 13% over the past three years, well ahead of the overall industry. The company boasts a fairly large customer base, worth more than $5 billion and includes the likes of leading Fortune 500 retailers, manufacturers and logistics providers worldwide, top consumer product companies. It includes 30 of the top 50 U.S. retailers, and half of the top 100 Internet retailers.
Strategic Benefits
The deal is worth 12 times the estimated 2016 EBITDA of Intelligrated and is a strategic fit to Honeywell’s S&PS unit with its complementary products. Intelligrated's leading supply chain automation solutions will boost Honeywell's portfolio going forward. Its management expertise is also likely to enrich human capital.
Intelligrated offers a holistic support to retailers, manufacturers and logistics providers through a right mix of state-of-the-art products and after-market services and support to build smarter distribution and fulfillment operations. Intelligrated solutions will offer Honeywell a competitive edge through increased flexibility, efficiency and accuracy. This could be achieved through its high-performance solutions that utilize innovative concepts with industry-leading automation equipment and software to optimize productivity and faster delivery.
The Acquirer
Based in Morris Township, NJ, Honeywell is a global diversified technology and manufacturing company with a wide range of aerospace products and services. The company is a global leader in refrigerants, aerosols, and foam-insulation blowing agents that are used to replace ozone-depleting Chlorofluorocarbon and Hydro Chlorofluorocarbons. These products also improve the energy efficiency of homes, appliances, and commercial refrigeration systems.
The company’s Automation and Control Solutions business provides environmental and combustion controls, sensing controls, security and life safety products and services, process automation and building solutions and services for homes, buildings and industrial facilities. These connected solutions improve worker productivity, enrich operational intelligence with data-driven insights and provide real-time safety intelligence.
Honeywell currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include CLARCOR Inc. , Crane Co. (CR - Free Report) and Barloworld Ltd. (BRRAY - Free Report) , each carrying a Zacks Rank #2 (Hold).
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Honeywell (HON) Closes $1.5B Intelligrated Acquisition
Honeywell International Inc. (HON - Free Report) recently completed the acquisition of leading supply chain and warehouse automation firm Intelligrated for $1.5 billion. Post-integration, Intelligrated will form an integral part of Honeywell's Sensing and Productivity Solutions (S&PS) unit in its Automation and Control Solutions business.
The Aquiree
Based in Mason, OH, Intelligrated is a material handling automation and software engineering company. The supply chain and logistics solutions of Intelligrated include automated storage and retrieval systems, palletizers, robotics solutions, software and tote-handling systems. It operates across the United States, Canada, Mexico, Brazil and China, and employs over 3,100 people.
Intelligrated has grown at a CAGR of approximately 13% over the past three years, well ahead of the overall industry. The company boasts a fairly large customer base, worth more than $5 billion and includes the likes of leading Fortune 500 retailers, manufacturers and logistics providers worldwide, top consumer product companies. It includes 30 of the top 50 U.S. retailers, and half of the top 100 Internet retailers.
Strategic Benefits
The deal is worth 12 times the estimated 2016 EBITDA of Intelligrated and is a strategic fit to Honeywell’s S&PS unit with its complementary products. Intelligrated's leading supply chain automation solutions will boost Honeywell's portfolio going forward. Its management expertise is also likely to enrich human capital.
HONEYWELL INTL Price
HONEYWELL INTL Price | HONEYWELL INTL Quote
Intelligrated offers a holistic support to retailers, manufacturers and logistics providers through a right mix of state-of-the-art products and after-market services and support to build smarter distribution and fulfillment operations. Intelligrated solutions will offer Honeywell a competitive edge through increased flexibility, efficiency and accuracy. This could be achieved through its high-performance solutions that utilize innovative concepts with industry-leading automation equipment and software to optimize productivity and faster delivery.
The Acquirer
Based in Morris Township, NJ, Honeywell is a global diversified technology and manufacturing company with a wide range of aerospace products and services. The company is a global leader in refrigerants, aerosols, and foam-insulation blowing agents that are used to replace ozone-depleting Chlorofluorocarbon and Hydro Chlorofluorocarbons. These products also improve the energy efficiency of homes, appliances, and commercial refrigeration systems.
The company’s Automation and Control Solutions business provides environmental and combustion controls, sensing controls, security and life safety products and services, process automation and building solutions and services for homes, buildings and industrial facilities. These connected solutions improve worker productivity, enrich operational intelligence with data-driven insights and provide real-time safety intelligence.
Honeywell currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include CLARCOR Inc. , Crane Co. (CR - Free Report) and Barloworld Ltd. (BRRAY - Free Report) , each carrying a Zacks Rank #2 (Hold).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>