The race for warehouse automation is heating up with the news this week that Honeywell has signed an agreement to acquire privately held supply chain and warehouse automation firm Intelligrated from a company backed by Permira funds, a private equity firm. The deal, worth US$1.5 billion, transfers ownership of “mission-critical warehouse execution systems and software” for scanning, mobile computer and voice automation technologies, according to Honeywell.
Just two weeks earlier, Lloyd’s Loading List reported that the Kion Group had bought warehousing and logistics technology specialist Dematic for $2.1 billion, making this week’s acquisition the third major deal since May in the warehouse-automation sector.
The transaction is expected to close by the end of the third quarter of 2016, according to the two companies.
In a prepared statement, Alex Ismail, CEO and president of Honeywell Automation and Control Solutions, said that “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.”
According to Honeywell, Intelligrated has grown at a compound annual growth rate (CAGR) of approximately 13 percent over the past three years – well ahead of the industry average – plus a growing customer base and annual revenues of more than $5 billion. Its clients include “leading 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.”Like This Post