DOW JONES NEWSWIRES
Honeywell International Inc. (HON) agreed to acquire the RMG
Group, which makes equipment for the natural gas industry, in a
deal worth about $400 million.
The U.S. company said the acquisition adds to its products in
natural gas transportation, storage, distribution and industrial
consumption as the fuel gains popularity throughout the world.
RMG Group, which includes RMG Regel + Messtechnik GmbH and other
units, specializes in regulating and safety systems, shutoff and
metering technology, and installation services. Its 2009 sales were
estimated at $290 million.
Honeywell said the German company will become part of Honeywell
Process Solutions, in its Automation and Control Solutions business
group.
"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," said Norm Gilsdorf, president of Honeywell Process
Solutions.
The deal requires regulatory approvals.
In April, Honeywell reported a 38% drop in first-quarter profit,
and the diversified manufacturer lowered its full-year outlook,
noting slumping markets for business jets and automobiles.
Honeywell's shares were at $31.90, up 0.2%, in after-hours
trading. The stock is down 28% in the past nine months.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
Kathy.Shwiff@dowjones.com