Honeywell (HON) Stock Rises on Intelligrated Acquisition
NEW YORK (TheStreet) -- Honeywell Int'l (HON) - Get Report stock is increasing 1.01% to $117.50 in mid-morning trading on Friday after the Morris Plains, NJ-based industrial conglomerate agreed to acquire a supply chain and warehouse automation provider for $1.5 billion.
Honeywell expects Intelligrated to compliment the company's scanning, mobile computer and voice automation technologies. The transaction, which is subject to regulatory review, is expected to close by the end of the 2016 third quarter.
"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," Alex Ismail, CEO of Honeywell Automation and Control Solutions, said in a statement.
Mason, OH-based Intelligrated, which is privately held by a company backed by private-equity firm Permira, has more than 3,100 employees and is estimated to generate about $900 million in sales this year.
"This acquisition fits with our vision for a connected industrial company and a connected worker," Ismail added.
Honeywell was reportedly competing with Japan's Toyota Industries (TYIDY) for Intelligrated, sources told Reuters before Honeywell confirmed the deal.
Separately, Honeywell International has a "buy" rating and a letter grade of A+ at TheStreet Ratings because of the company's revenue growth, solid stock price performance, growth in earnings per share, increase in net income and expanding profit margins.
You can view the full analysis from the report here: HON
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.