A privately held Warren County-based supply chain and warehouse automation company will be purchased for $1.5 billion.
Intelligrated at 7901 Innovation Way in Mason entered an agreement late last week to be acquired by New Jersey-based Honeywell, a Fortune 100 diversified technology and manufacturing leader.
The transaction is expected to close by the end of the third quarter, according to both companies.
Eric Hansen, Mason’s city manager, said Intelligrated has had a significant impact because it started in the city and expanded there several times, most recently in 2013 and 2015.
“Intelligrated has been a great success story for the city of Mason along with several other companies,” Hansen said. “This is just a further evolution of that success. It gives them access to global markets, global capital and deepens their access to technology.”
Honeywell, which employs approximately 130,000 people worldwide, generated revenues of $38.6 billion in 2015. It serves customers with aerospace products and services; control technologies for buildings, homes, and industry; turbochargers; and performance materials.
Intelligrated posted 30.4 percent revenue growth from 2013 to 2015 and the company’s 2016 sales are estimated to be approximately $900 million.
Founded in 2001, the logistics equipment maker has about 3,200 employees total worldwide, including 1,200 in Butler and Warren counties.
In addition to the Mason headquarters, Intelligrated operates four manufacturing plants in West Chester Twp. and London, Ohio; Owings Mills, Md.; St. Louis, Mo.; and Danville, Ky. A second West Chester Twp. warehouse facility fills orders from customers for replacement parts. Also, Intelligrated has sales and service offices throughout the country and in Brazil, Canada, China and Mexico.
Intelligrated will become part of Sensing and Productivity Solutions in Honeywell’s Automation and Control Solutions business. Intelligrated co-founders Chris Cole and Jim McCarthy will continue to serve in a leadership role.
“The Intelligrated story has always been defined by innovation and doing whatever it takes to give our customers a competitive edge,” Cole said in a statement. “Joining Honeywell enables us to break new ground with the most advanced levels of systems integration, intelligent software and controls, and data-driven efficiency. Our commitment to innovation and intense focus on customer service and support will continue to deliver unmatched results.”
Since being acquired by global investment firm Permira in 2012, Intelligrated has undergone a period of tremendous growth, which included increasing its revenue by more than 90 percentr and winning major new customers like UPS, Amazon, USPS, Nordstrom, Walgreens and Tesla.
That has helped drive Intelligrated’s sales pipeline by 300 percent.
It’s also more than tripled research and development investment in new systems and capabilities, enhanced software capabilities and aftermarket services and expanded its geographic reach into Brazil, China and Mexico.
The company on Tuesday declined to provide further comment on the deal, including what effect it might have on staffing, until the deal is finalized.