Honeywell has signed an agreement to acquire privately held, warehouse automation business Transnorm for approximately €425 million from IK Investment Partners.
Transnorm is a provider of engineered conveyor solutions that quickly and efficiently transport products and packages for premier e-commerce and parcel delivery customers. Transnorm has an installed base of 160,000 units and a large and growing aftermarket parts and services business. About 60 percent 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 percent 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 Solutions segment.
"Faced with rising e-commerce demands, distribution centres 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 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 e-commerce. Honeywell entered the market in 2016 with the acquisition of Intelligrated, a leading provider of automated material handling solutions and software. Honeywell's warehouse and logistics business also includes highly complementary technologies including voice-directed workflow solutions, advanced mobile computing hardware and software, and FLUX warehouse management software that powers connected distribution centres.
Transnorm is a provider of curved conveyer systems, and its patented, high-performance 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.