Knowledge Center: Making Moves in Gas Flow Metering

Making Moves in Gas Flow Metering

At a cost of approximately US$400 million, Honeywell has completed the acquisition of the RMG Group (RMG Regel + Messtechnik GmbH and all of its subsidiaries) a Germany-based global player in natural gas measuring and control products, services and integrated solutions. RMG will be integrated into the Honeywell Process Solutions division.

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.

"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 aims to build Honeywell’s presence particularly in the areas of natural gas transportation, storage, distribution and industrial consumption, with RMG aligning 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 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."