Honeywell buys supply-chain firm for US$1.5b in return to bite-size M&A

Dallas

BLOCKED in an attempt at a record US$90 billion takeover, Honeywell International Inc is going back to its traditional pursuit of smaller deals with a US$1.5 billion purchase of warehouse automation company Intelligrated.

The acquisition will help Honeywell tap into fast growth for fulfilment centres spurred by online commerce, according to a company statement Friday. Intelligrated, which belongs to a company backed by UK buyout firm Permira, is expected to generate 2016 sales of US$900 million after increasing revenue by an annual average of 13 per cent in the last three years, Honeywell said.