Japan's Toyota Industries Corp is competing against US diversified industrial conglomerate Honeywell International Inc to acquire US distribution systems and logistics company Intelligrated Inc, people familiar with the matter said.

The strong interest in the company follows German forklift truck maker Kion Group AG's agreement last week to buy Intelligrated's larger peer Dematic for $3.25 billion to expand into automated warehouses and supply chains that have ballooned with the growth of e-commerce.

A deal for Intelligrated could come in days and value the privately held company at around $1.5 billion, including debt, the people said this week. There is no certainty, however, that any acquisition agreement will be reached, the people cautioned.

The sources asked not to be identified because the deliberations are confidential. Honeywell declined to comment. Toyota Industries and Intelligrated did not immediately respond to requests for comment.

Intelligrated, based in Mason, Ohio, manufactures, services and installs high-speed automated material handling equipment in customer distribution centres that primarily serve online retailers.

Private equity firm Permira Advisers acquired Intelligrated in 2012 for more than $500 million from Gryphon Investors, another private equity firm. Reuters reported in March that Permira was working with Centerview Partners Holdings and Nomura Co Ltd on an auction for Intelligrated.

Due to increased online sales and demand for faster delivery times, the market for supply chain automation is expected to grow by 10 per cent by 2019, Kion said in its presentation on the Dematic deal last week. - Reuters