Honeywell invests in Chinese supply chain software provider and forms new JV
Honeywell has signed an agreement to acquire a 25% 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.
Under the terms of the deal, Honeywell will hold a 75% 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.
Its supply chain execution solutions include its Warehouse Management System, Transportation Management System, Order Management System and Data Exchange Platform.
Honeywell said FLUX's offerings complement its own, which include 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.