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Honeywell Deals for RMG

The acquisition of German-based RMG Group strengthens Honeywell’s position in clean energy, says Honeywell Process Solutions President Norm Gilsdorf.

Honeywell announced on June 25 that it has signed a definitive agreement valued at approximately US$400 million to acquire the RMG Group (RMG, Regel + Messtechnik GmbH and all of its subsidiaries, together RMG, a Kassel, Germany-based global supplier of natural gas measuring and control products, services and integrated solutions. RMG will be integrated into Honeywell Process Solutions (HPS,, 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 US$290 million.

Norm Gilsdorf, president of Honeywell Process Solutions, told Automation World, "The company is a leader in such natural gas-related technologies as meters, pressure reduction equipment, flow measurement, control and related engineering. It sells individual products, plus it can design entire solutions including delivering turnkey skid-mount systems."

Asked how RMG will fit within HPS, Gilsdorf said to consider its relation to HPS and Honeywell unit UOP for gases to parallel Enraf's relationship with liquids. Enraf is another HPS unit that specializes in tank gauging and tank inventory management, among other lines. RMG is currently working on the controls of a large natural gas pipeline starting in Turkmenistan, going through Uzbekistan and Kazakhstan, and ending in China. "Natural gas is good clean energy," added Gilsdorf, "and RMG has the same values we drive for customers, among which are safety, reliability and efficiency."

“Our business, customers and employees will benefit from becoming part of Honeywell,” said Dr. Henning Bähren, 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 Process Solutions

RMG Group

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