Diversified technology and manufacturing corporation Honeywell International (NYSE:HON) announced today that it will acquire supply chain solutions company Intermec (NYSE:IN) for around $600 million net of cash and debt acquired.
Intermec investors will receive $10 per share in cash, a 25% premium over the stock's Friday closing price. The purchase price represents a 48% premium to Intermec's closing price on Nov. 1, the last trading day prior to it announcing it had retained B of A Merrill Lynch, the company said. In fundamental measures, the purchase price is the equivalent of 10 times Intermec's trailing-12-month EBITDA.
Intermec provides mobile computing, radio frequency identification solutions (RFID) and bar code, label and receipt printers for use in warehousing, supply chain, field service and manufacturing environments.
Honeywell's press release also detailed its own lackluster 2013 forecasts, partially lowered due to the Intermec acquisition, which is expected to shave $0.03 to $0.04 off 2013 earnings.
"The addition of Intermec is a natural extension to our Scanning & Mobility business, which was established through the successful acquisitions of Hand Held Products, Metrologic and EMS," said Honeywell Automation and Control Solutions President and CEO Roger Fradin in a statement.
Intermec currently operates more than 65 offices worldwide with 2,200 employees , and is expected by Honeywell to result in net profit in 2014.
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