Honeywell acquires Transnorm to grow in warehouse automation
October 16, 2018
Honeywell has agreed to acquire privately held German warehouse automation business Transnorm for approximately €425m from IK Investment Partners. Honeywell has also completed its spin-off of Garrett Motion, its former transportation systems business.
"Today's announcements show the continued progress Honeywell is making to transform our portfolio to be more focused and growth-oriented for our share owners," said Honeywell chairman 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.”
He said the acquisition of Transnorm would build upon the success of the Intelligrated acquisition and allow the company’s warehouse automation business to take part in strong European growth driven by ecommerce.
“The acquisition provides multiple avenues for continued growth and margin expansion for Honeywell,” he said. “We are excited to add this market leader to an already robust business."
Transnorm is a provider of engineered conveyors that transport products and packages for ecommerce and parcel delivery companies. It has an installed base of 160,000 units and a large and growing aftermarket parts and services business.
About 60 per cent of Transnorm's annual sales are generated in Europe. The company's annual sales are approximately €100m and are on track to grow by more than 30 per cent in 2018.
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 segment.
"Faced with rising ecommerce demands, distribution centres and parcel delivery providers are looking to automation to improve productivity, speed and accuracy," said John Waldron, president and CEO of Honeywell’s safety and productivity segment. "Transnorm complements our portfolio of automated material handling equipment and supply chain software to enable us to deliver our vision of the connected distribution centre to our customers. It also substantially enhances our presence in the European market."
This acquisition strengthens Honeywell's presence in the warehouse automation market, which is growing at a double-digit pace driven by growth in ecommerce. Honeywell entered the market in 2016 with the acquisition of Intelligrated, a provider of automated material handling software. Honeywell's warehouse and logistics business also includes complementary technologies including voice-directed workflow, advanced mobile computing hardware and software, and Flux warehouse management software that powers connected distribution centres.
Transnorm says it is the market leader in curved conveyer systems, and its patented curved conveyers transport products for some of the largest parcel delivery providers in Europe. 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.
Garrett Motion designs, manufactures and sells engineered turbocharger and electric boosting technologies for light and commercial vehicle OEMs and the aftermarket.