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