Honeywell buys warehouse automation company Transnorm for €425 Million
Honeywell has signed an agreement to acquire privately held, warehouse automation business Transnorm for approximately €425 million from IK Investment Partners.
The transaction is expected to close in November, subject to customary closing conditions, including regulatory review. Upon approval, Transnorm will be part of Honeywell's Safety and Productivity Solutions (SPS) segment.
This acquisition strengthens Honeywell's presence in the warehouse automation market, which is growing at a double-digit pace driven by growth in e-commerce. Honeywell entered the market in 2016 with the acquisition of Intelligrated, a leading provider of automated material handling solutions and software.
Transnorm is a provider of engineered conveyor solutions, particularly curved conveyer systems, to an installed base of 160,000 , which it supports in the aftermarket for parts and services. About 60% of Transnorm's annual sales are generated in Europe. The company's annual sales are approximately €100 million and are on track to grow by more than 30% in 2018.
Transnorm also manufactures booms, which are moveable conveyor systems used to load parcels onto trucks and trailers. Headquartered in Harsum, Germany, the company employs more than 500 people.
"Today's announcements show the continued progress Honeywell is making to transform our portfolio to be more focused and growth-oriented for our shareowners," said Honeywell Chairman and Chief Executive Officer Darius Adamczyk. "We have completed the spin-off of Garrett and are making good progress in executing the spin of the Homes and ADI global distribution business, which will be named Resideo. The acquisition of Transnorm will build upon the tremendous success of the Intelligrated acquisition and allow our warehouse automation business to take part in very strong European growth driven by e-commerce. The acquisition provides multiple avenues for continued growth and margin expansion for Honeywell. We are excited to add this market leader to an already robust business."
"Faced with rising e-commerce demands, distribution centers and parcel delivery providers are looking to automation solutions to improve productivity, speed and accuracy," said John Waldron, president and CEO of Honeywell Safety and Productivity Solutions. "Transnorm complements our portfolio of automated material handling equipment and supply chain software to enable us to deliver our vision of the connected distribution center to our customers. It also substantially enhances our presence in the European market."