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Honeywell Agrees to Acquire Gas Measurement and Control Leader RMG Regel + Messtechnik

Posted on: Thursday, 25 June 2009, 16:30 CDT

Complementary Solutions Strengthen Honeywell's Presence in Clean Energy, Continue Driving Great Positions in Good Industries

BRUSSELS, June 25 /PRNewswire-FirstCall/ -- 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."

Honeywell International (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com. Honeywell Process Solutions is part of Honeywell's Automation and Control Solutions group, a global leader in providing product and service solutions that improve efficiency and profitability, support regulatory compliance, and maintain safe, comfortable environments in homes, buildings and industry. For more information about Process Solutions, access www.honeywell.com/ps.

This release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Forward-looking statements are based on management's assumptions and assessments in light of past experience and trends, current conditions, expected future developments and other relevant factors. They are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by our forward-looking statements. Our forward-looking statements are also subject to risks and uncertainties, which can affect our performance in both the near- and long-term. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.

SOURCE Honeywell

Source: PR Newswire

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