Honeywell has signed an agreement to acquire supply chain and warehouse automation company Intelligrated for $1.5 billion. The purchase price translates to approximately 12 times Intelligrated’s estimated 2016 earnings before interest, taxes, depreciation and amortization (EBITDA).
The company’s 2016 sales are estimated to be approximately $900 million. The transaction is expected to close by the end of the third quarter, subject to customary closing conditions, including regulatory review. Upon approval, Intelligrated will be 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 designed to improve distribution and fulfillment operations. The company has grown at a compound annual growth rate (CAGR) of approximately 13 percent over the past three years. Intelligrated has a large and growing customer base of more than $5 billion, including 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.
“This acquisition fits with our vision for a connected industrial company and a connected worker,” said Alex Ismail, president and CEO of Honeywell Automation and Control Solutions.
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.