Associated Press and Herald staff
EVERETT — Intermec Inc., which makes barcode printers and radio frequency identification products, said Monday that it reached a deal to sell itself to Honeywell International Inc. for about $603.4 million in cash.
“We are pleased that Honeywell recognizes and values the capabilities as well as the strategic potential of our business,” Allen J. Lauer, Intermec’s chairman and interim chief executive, said in a statement.
Lauer said the deal with Honeywell stemmed from a thorough review of the Everett-based company’s businesses by its board, with the goal of determining the best possible overall outcome for shareholders.
Honeywell, a technology and manufacturing company based in New Jersey, will pay $10 per share for Intermec. Based on the company’s about 60.3 million outstanding shares, the deal is worth about $603.4 million. Intermec valued it at about $600 million, net of cash and debt acquired.
The price represents a 25 percent premium over Intermec’s Friday closing stock price of $7.98. Intermec shares shot up $1.87, or 23.5 percent, to $9.83 in premarket trading.
Intermec has endured a chaotic year in 2012. Lauer stepped in as interim CEO earlier this year when the company’s chief, Patrick Byrne, left after Intermec reported a first quarter loss of $242.1 million. Since then, Intermec announced restructuring plan that cut about 170 jobs worldwide.
In light of the deal, Intermec said it’s suspending its previously announced search for a permanent chief executive.
Honeywell said the addition of Intermec will strengthen its core scanning and mobile computing business, while also opening up new opportunities in radio frequency identification, voice recognition and barcode and receipt printing markets that it currently doesn’t serve.
The conglomerate makes products ranging from First Alert home security systems to automotive brake pads in its consumer division. It also provides products and services to the aerospace and defense, building and construction, energy, healthcare, chemical and manufacturing sectors.
Intermec employs about 2,200 people and operates more than 65 offices around the world. Honeywell said it expects the acquisition to lower its 2013 earnings by 3 cents or 4 cents per share, but increase its profits the following year.
The agreement has been approved by the boards of both companies, but remains subject to Intermec shareholder and regulatory approvals. It’s expected to close by the end of the second quarter 2013.
Honeywell shares were not trading premarket. The stock closed Friday at $61.97, up 14 percent for the year.