Updated Tuesday, December 11, 2012 at 09:42 AM
Honeywell International is buying Everett-based Intermec, which makes radio-frequency identification (RFID) products and bar code printers, for about $600 million, the two companies announced Monday.
Morris Township, N.J.-based Honeywell, a manufacturing and technology company, is paying $10 a share in cash for Intermec.
Intermec shares closed Monday at $9.83, up 23 percent.
Honeywell shares closed at $61.86, down 0.18 percent.
Intermec will become part of Honeywell’s automation and control solutions business, according to Bloomberg News, which also reported that Honeywell said the move will trim Honeywell’s profit by 3 or 4 cents a share in 2013.
The agreement came about after Intermec’s board conducted a strategic review of its businesses and determined that Honeywell’s offer was in the best interest of Intermec’s stakeholders, Allen Lauer, Intermec chairman and interim CEO, said in a letter to employees.
“By merging with Honeywell, Intermec will enjoy greater scale and resources to better compete,” Lauer said in a letter to business leaders.
In his letter to employees, Lauer said: “The combination of our long history of innovation and engineering expertise, global reach and leading products and solutions, with the significant global scale and resources of Honeywell, enables a combined entity that will be at the forefront of this ongoing transformation and position the company as a global leader in the AIDC industry.”
(AIDC stands for “automatic identification and data capture.”)
Pending Intermec stockholder and regulatory approvals, the deal is expected to close in the second quarter of 2013.
Intermec has been having a tough time lately.
In June, it said it was laying off 7 percent of its global workforce in an attempt to restructure and lower costs after a weaker-than-expected first quarter.
The company also said at that time that then-CEO Patrick Byrne had left the company.
Intermec said Monday it’s suspending its search for a permanent CEO in light of the acquisition announcement.
In the third quarter, Intermec reported a loss of $272.4 million, or $4.52 cents per share.
The company had revenue of $848 million in 2011, and has 2,300 employees worldwide.
Intermec did not say how many of those employees are in the Puget Sound area or what will happen to them.
In a published employee Q-AND-A after the announcement of the deal, Intermec said, in reply to a question about whether any employees would become redundant or have their jobs relocated, that “there is always the potential for change; however, it’s too early to be specific about details.”
Intermec was founded in 1966 as Interface Mechanisms, then renamed to Intermec in 1982.
It has acquired several companies, and been acquired itself by several companies, over its history.