Honeywell has agreed to buy warehouse automation business Transnorm for approximately $492 million, it announced Monday.
The Morris Plains-based conglomerate said in a news release that it will pay 425 million euros to IK Investment Partners for the German company.
Transnorm provides engineered conveyor solutions for e-commerce and parcel delivery companies. About 60 percent of its annual sales of 100 million euros — a total that is on track to grow, Honeywell said — are in Europe. The company, noted for its curved conveyors, has more than 500 employees.
“Faced with rising e-commerce demands, distribution centers and parcel delivery providers are looking to automation solutions to improve productivity, speed and accuracy,” John Waldron, CEO and president of Honeywell’s Safety and Productivity Solutions unit, said in a prepared statement. 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.”
The transaction is expected to close in November, pending customary approvals and conditions. Transnorm will become part of Honeywell Safety and Productivity Solutions.
Honeywell also said it has completed the spinoff of Garrett Motion Inc., its former Transportation Systes business. Garrett is now trading publicly on the New York Stock Exchange under the symbol “GTX.”
“Today’s announcements show the continued progress Honeywell is making to transform our portfolio to be more focused and growth-oriented for our shareowners,” Chairman and CEO Darius Adamczyk said in a statement. “We have completed the spinoff 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.”
