Push-button picking: Intelligrated specialises in automated warehousing systems © Intelligrated
Push-button picking: Intelligrated specialises in automated warehousing systems © Intelligrated

Honeywell buys into warehouse automation

5 July 2016

US conglomerate Honeywell is to buy distribution systems and logistics automation firm Intelligrated in response to growing demand from e-commerce.

Honeywell, a manufacturer of scanning, mobile and voice automation products and aerospace technology, said there was a need for new storage and logistics systems that can cut costs.

Ohio-based Intelligrated supplies warehouse software and automation systems across the US, Canada, Mexico, Brazil and China. It provides services for a number of sectors including wholesale, food, retail and pharmaceuticals, and its customer base includes Amazon, UPS and Tesla.

“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, president and CEO of Honeywell Automation and Control Solutions.

Honeywell will buy the company for $1.5bn from private equity firm Permira, three times the price that Permira reportedly paid in 2012. The deal is expected to complete in the third quarter of 2016.

Intelligrated’s products include materials handling spare parts procurement website ontimeparts.com, voice-enabled distribution and logistics Datria Systems, and Go-Kart voice and light mobile picking system. 

Honeywell has an active pipeline of mergers and acquisitions, a company spokesperson told SM, but he would not comment if this includes additional supply chain automation companies.

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