Key Takeaways
- • Honeywell completed its $1.5 billion acquisition of Intelligrated from Permira-backed ownership in August 2016, integrating the supply chain automation provider into its Safety and Productivity Solutions division.
- • Intelligrated demonstrated substantial growth under Permira's stewardship since 2012, including 90% revenue growth, 300% expansion in sales pipeline, and major customer wins including Amazon, UPS, Tesla, and Nordstrom.
- • The acquisition strategically positions Honeywell to capitalize on e-commerce-driven demand for warehouse automation, with Intelligrated contributing approximately $900 million in annual sales at the time of transaction close.
- • Intelligrated's technology portfolio—including automated storage/retrieval systems, robotic solutions, and advanced software capabilities—integrates with Honeywell's data capture and workflow performance tools to create an Industrial Internet of Things-enabled supply chain offering.
- • Intelligrated co-founder Chris Cole retained operational leadership post-acquisition, reporting directly to John Waldron, president and CEO of Honeywell Safety and Productivity Solutions.
Summary
Honeywell International Inc. completed its acquisition of Intelligrated Systems Inc. for $1.5 billion in August 2016, acquiring the Atlanta-based supply chain and warehouse automation leader from Permira Advisers LLC, the European private equity firm that had owned the company since 2012. The all-cash transaction represented a significant exit for Permira, which had originally acquired Intelligrated for more than $500 million from Gryphon Investors.
Under Permira's ownership, Intelligrated experienced substantial value creation. The company grew revenues by more than 90%, expanded its sales pipeline by 300%, and more than tripled R&D investment in emerging capabilities including automated storage/retrieval systems, full parcel solutions, and robotic technologies. The company secured major new customers spanning e-commerce (Amazon, Tesla), logistics (UPS, USPS), and retail (Nordstrom, Walgreens). At the time of acquisition close, Intelligrated was projecting approximately $900 million in annual sales.
Honeywell integrated Intelligrated into its Safety and Productivity Solutions division, combining the company's material handling automation expertise—including automated storage systems, palletizers, robotics, software, and tote-handling systems—with Honeywell's data capture and workflow performance technology. This combination was designed to enable customers to leverage Industrial Internet of Things capabilities to optimize supply chain productivity and fulfillment speed amid sustained e-commerce growth.
The transaction occurred within a competitive landscape for logistics automation assets. Toyota Industries had reportedly competed for Intelligrated, while German forklift manufacturer Kion Group had recently acquired competitor Dematic for $3.25 billion. Intelligrated's co-founder Chris Cole assumed operational leadership of the combined business following close, reporting to John Waldron, president and CEO of Honeywell Safety and Productivity Solutions, signaling continuity in management and technology direction.
Under Permira's ownership, Intelligrated experienced substantial value creation. The company grew revenues by more than 90%, expanded its sales pipeline by 300%, and more than tripled R&D investment in emerging capabilities including automated storage/retrieval systems, full parcel solutions, and robotic technologies. The company secured major new customers spanning e-commerce (Amazon, Tesla), logistics (UPS, USPS), and retail (Nordstrom, Walgreens). At the time of acquisition close, Intelligrated was projecting approximately $900 million in annual sales.
Honeywell integrated Intelligrated into its Safety and Productivity Solutions division, combining the company's material handling automation expertise—including automated storage systems, palletizers, robotics, software, and tote-handling systems—with Honeywell's data capture and workflow performance technology. This combination was designed to enable customers to leverage Industrial Internet of Things capabilities to optimize supply chain productivity and fulfillment speed amid sustained e-commerce growth.
The transaction occurred within a competitive landscape for logistics automation assets. Toyota Industries had reportedly competed for Intelligrated, while German forklift manufacturer Kion Group had recently acquired competitor Dematic for $3.25 billion. Intelligrated's co-founder Chris Cole assumed operational leadership of the combined business following close, reporting to John Waldron, president and CEO of Honeywell Safety and Productivity Solutions, signaling continuity in management and technology direction.
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