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Honeywell strengthens natural gas offering with company buy-out

Honeywell will buy-out RMG GROUP in a USD$400 million deal which includes the Germany-based natural gas measuring and control products, services and integrated solutions assets and all of its subsidiaries.

RMG will be integrated into Honeywell Process Solutions, which is part of Honeywell’s Automation and Control Solutions business group.

While the buy-out transaction is subject to regulatory approvals, the acquisition will strengthen Honeywell’s presence in the areas of natural gas transportation, storage, distribution and industrial consumption.

Founded in 1931 in Kassel, RMG specialises 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 USD$290 million.

“Global demand for gas, specifically clean energy sources like natural gas, is growing and RMG is an established solution provider in the industry,” said Honeywell Process Solutions president, Norm Gilsdorf.

“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.”

RMG aligns strongly with Honeywell’s field instrumentation and control solutions offerings. 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, according to Honeywell.

The acquisition will also support Honeywell’s strategy to offer solutions that enhance energy efficiency; nearly 50 per cent of Honeywell’s current technology delivers energy savings and efficiency, the company claims.

“Our business, customers and employees will benefit from becoming part of Honeywell,” said RMG GROUP chief executive officer, Dr Henning Bähren.

“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.”

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