Honeywell has agreed to acquire Intelligrated, a North American-based automated material handling solutions provider, in a transaction valued at $1.5 billion. Intelligrated’s 2016 sales are estimated to be approximately $900 million and brings a portfolio of warehouse automation, order fulfillment and software solutions with an extensive presence in North American e-commerce, retail, food and beverage markets.
Intelligrated co-founders Chris Cole and Jim McCarthy will continue to serve in a leadership role. Intelligrated will become part of sensing and productivity solutions (S&PS) in Honeywell’s automation and control solutions business.
Intelligrated designs, manufactures, installs and supports conveyor, sortation, palletizers, robotics, AS/RS solutions, warehouse execution systems, labor management software and order fulfillment technologies. The company provides aftermarket support through its lifecycle support services group, providing maintenance, technology refresh, modifications, system assessments, spare parts and track-driven training programs. Intelligrated employs more than 3,100 associates in the United States, Canada, Mexico, Brazil and China. The company posted 30.4 percent revenue growth from 2013 to 2015.
Editor's Insight: This planned acquisition marks the most recent investment in warehouse automation that is being driven by an increasingly competitive retail market. Food Logistics also reported recently that KION Group AG, a supplier of warehouse equipment, forklifts and related services, plans to acquire Dematic Corp., an automation supplier that specializes in supply chain optimization, for $2.1 billion.
The Material Handling Institute’s most recent annual survey of manufacturers, distributors and service providers found that robotics and automation is seen as the most disruptive technology they face, and awareness of it posted the highest gain over the prior year compared to other technologies.
There is no doubt that the growth of e-commerce is driving much of the investment in warehouse automation. 7-5-16 By Elliot Maras