Recently, Honeywell International Inc. (HON) expanded its management control systems offerings with the acquisition of INNCOM, a Connecticut based manufacturer of advanced software-based energy management solutions and in-room controls for lodging, healthcare and educational institutions. Lodging industry has expanded widely throughout the world, especially in the Middle East, India and Asia Pacific. INNCOM offers to its customers a wide range of hotels starting from mid-scale hotels to five-star luxury properties, including Hilton, Sheraton, Hyatt, St. Regis, Four Seasons, Radisson, Kimpton and several others.
Honeywell's Environmental & Combustion Controls (:ECC) business, a part of Honeywell Automation and Control Solutions (:ACS), will incorporate INNCOM. The business provides a complete range of energy solutions. With this acquisition, the company will provide energy management solutions to hotels, hospitals and educational institutions, enabling them to reduce their energy cost and enhance operational efficiency.
The offerings from INNCOM enhance the look of guest rooms and common areas while providing energy efficiency. Further, the system offerings control temperature and humidity, manage energy, control lighting and drape, provide on-line electronic lock control, and enhance operating efficiency of housekeeping, security, operations and management staff. In 2011, INNCOM generated total revenue of $24 million.
The acquisition is a strategic fit for Honeywell, complementing its integrated HVAC, lighting controls and energy management offerings. Substantial benefit will be derived from the combination of INNCOM's global dealer network and Honeywell's contractor-dealer and direct sales channels, providing a complete solution to the energy customers.
Honeywell International is a diversified technology and manufacturing company serving customers worldwide with aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals and energy efficient products and solutions for homes, business and transportation.
Honeywell currently has a Zacks #2 Rank (Buy recommendation) over the next one-to-three months.
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