Oil & Gas News
Tuesday, 7 July 2009
HONEYWELL AGREES TO ACQUIRE GAS MEASUREMENT AND CONTROL LEADER RMG REGEL & MESSTECHNIK
Complementary Solutions Strengthen Honeywell's Presence in Clean Energy, Continue Driving Great Positions in Good Industries
BRUSSELS, June 25, 2009 - Honeywell (NYSE:HON) today announced it has signed a definitive agreement valued at approximately $400 million USD to acquire the RMG GROUP (RMG Regel & Messtechnik GmbH and all of its subsidiaries, together RMG) a Kassel, Germany-based global leader in natural gas measuring and control products, services and integrated solutions. RMG will be integrated into Honeywell Process Solutions, which is part of Honeywell's Automation and Control Solutions business group. The transaction is subject to regulatory approvals.
Founded in 1931 in Kassel, RMG specializes in the design and manufacture of natural gas control, measurement and analysis equipment including flow metering technology, regulating products and safety devices for oil and gas companies. RMG has estimated 2009 sales to be $290 million USD.
"Global demand for gas, specifically clean energy sources like natural gas, is growing and RMG is an established solution provider in the industry," said Norm Gilsdorf, president of Honeywell Process Solutions. "RMG's technology complements our industrial platform and will ultimately enable us to provide our existing customers, as well as new customers, with broader solutions that span the entire gas supply chain. This is an excellent fit for our business and will strengthen Honeywell’s global presence in the clean energy industry."
The acquisition will build Honeywell's presence particularly in the areas of natural gas transportation, storage, distribution and industrial consumption. RMG aligns strongly with Honeywell's field instrumentation and control solutions. For example, RMG's gas flow meters and regulating devices complement Honeywell's pressure and temperature transmitters, as well as liquid natural gas (LNG) level gauges. Also, the acquisition of RMG supports Honeywell's strategy to offer solutions that enhance energy efficiency; nearly 50 percent of Honeywell's current technology delivers energy savings and efficiency. Natural gas is a clean fuel alternative that is becoming increasingly popular in both mature and emerging markets around the world.
"Our business, customers and employees will benefit from becoming part of Honeywell," said Dr. Henning Bahren, chief executive officer of RMG GROUP. "RMG is already a global leader and this acquisition will give us access to broader growth opportunities and distribution channels, and gives us the ability to expand our product offerings in a world with ever-increasing demand for clean energy. Honeywell's industrial offerings will allow us to create enhanced automation and control solutions for all of our customers worldwide."16:43