Honeywell To Invest In Leading Chinese Supply Chain Software Provider And Form A New Joint Venture To Pursue Opportunities Outside China
-- Honeywell acquiring 25 percent ownership interest in FLUX Information Technology in China and will hold 75 percent stake in new joint venture
-- The partnership enhances Honeywell's Connected Supply Chain offerings and advances its software-industrial strategy
FORT MILL, S.C., Dec. 7, 2017 /PRNewswire/ -- Honeywell (NYSE: HON) announced today it has signed an agreement to acquire a 25 percent ownership interest in FLUX Information Technology, a leading provider of warehouse management and related supply chain software in China.
Honeywell will also form a new joint venture company with FLUX's founder to serve customers outside China. Honeywell will hold a 75 percent stake in the new joint venture, which will initially focus on opportunities in the Asia Pacific region. The investment in FLUX is expected to close by the end of the fourth quarter pending Chinese regulatory approvals.
FLUX develops and implements warehouse management systems and other software for customers in multiple industries, and is a leading player in China's booming e-commerce, apparel, pharmaceutical, retail, third-party logistics, cold chain and manufacturing sectors. FLUX's supply chain execution solutions include its Warehouse Management System, Transportation Management System, Order Management System and Data Exchange Platform.
FLUX's offerings complement those of Honeywell Safety and Productivity Solutions, which develops hardware and software that improve productivity, enhance worker safety, and increase accuracy and throughput of supply chains.
"We are pleased to be partnering with a dynamic, emerging leader with a proven track record in a fast-growing market," said John Waldron, president and CEO, Honeywell Safety and Productivity Solutions. "FLUX's strong software capabilities fit well into Honeywell's Connected Supply Chain strategy, complementing the warehouse expertise of our Honeywell Intelligrated business. FLUX's warehouse, transportation management and order management offerings complement Honeywell's data capture technology, worker productivity and warehouse automation solutions, and enable us to maximize customer satisfaction in the digital age."
Over the past decade, FLUX's business has grown significantly. Its software now manages more than 12 million square meters of warehouse space in China alone. During China's Nov. 11 "Singles' Day" online shopping festival – the largest e-commerce day in the world -- FLUX's solutions helped process up to 650,000 orders per warehouse per day. E-commerce sales currently total more than $1.3 trillion in the Asia Pacific region according to expert estimates, and sales are expected to more than double to $3 trillion by 2021.
"We are pleased to team up with Honeywell to further expand in China and to play an active role in the global warehousing and logistics industry by offering our leading Warehouse Management System solutions," Shi Zunli, founder and CEO of FLUX. "Honeywell has outstanding industry reach and strong global presence, which will enable us to fulfill our vision of globalization. With this strategic partnership, we will connect, collaborate and create more value for our customers."
Li Ning, president of Honeywell SPS Greater China & India, said, "This partnership will allow Honeywell to accelerate the pace of executing our connected strategy in China and the Asia-Pacific region and create a win-win situation for both companies. This agreement strengthens our position as a software-industrial company and supports our efforts in developing and acquiring capabilities in China that are relevant for a global customer base."
FLUX Information Technology is a leading provider of logistics software and solutions in China. It provides supply chain execution solutions including Warehouse Management System (WMS), Transportation Management System (TMS), Order Management System (OMS) and Data Exchange Platform (Datahub) to customers in multiple industries, such as e-commerce, apparel, pharmaceuticals, retail, 3rd party logistics, cold chain and manufacturing. For more news and information on FLUX, please visit www.flux.com.cn or follow us on WeChat @FLUX-2013.
Honeywell Safety and Productivity Solutions (SPS) provides products, software and connected solutions that improve productivity, workplace safety and asset performance for our customers across the globe. We deliver on this promise through industry-leading mobile devices, software, cloud technology and automation solutions, the broadest range of personal protective equipment and gas detection technology, and custom-engineered sensors, switches and controls. We also manufacture and sell a broad portfolio of footwear for work, play and outdoor activities, including XtraTuf' and Muck Boot' brand footwear.
Honeywell (www.honeywell.com) is a Fortune 100 software-industrial company that delivers industry specific solutions that include aerospace and automotive products and services; control technologies for buildings, homes, and industry; and performance materials globally. Our technologies help everything from aircraft, cars, homes and buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.
This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.