Information and communication technology leader expands presence in North America.

HMS Networks AB has entered into a binding agreement with Spectris Group Holdings Limited to acquire the Red Lion Controls business, a well-established US-based provider of industrial automation solutions, through the acquisition of 100 percent of the shares in Red Lion Controls Inc. and Red Lion Europe GmbH as well as certain assets in other jurisdictions (“Red Lion”), significantly expanding HMS’ presence in the North American market and complementing HMS’ offering.

Staffan Dahlström, HMS and

Marcel van Helten, Red Lion

“We are very happy to welcome Red Lion into the HMS Networks family, the companies are a great match both when it comes to products, geographic presence, and cultural aspects." said Staffan Dahlström, CEO of HMS. "The combination of Red Lion’s product portfolio, which is complementary to HMS’ offering and has limited overlap, and the geographic match with Red Lion having a strong position in the attractive North American market, and HMS with its core markets in Europe, will generate good cross-selling opportunities."

"Red Lion’s “Access” products fit well with HMS’ Anybus and Ewon product lines, while Red Lion’s “Connect” offering adds what HMS has been searching for several years; a strong Ethernet Switch offer with a strong market position. Finally, Red Lion’s “Visualize” offering brings new opportunities for HMS to explore the Data Visualization offering that is becoming more and more interesting with its central role in the Industrial Automation environment and its ability to provide additional value on top of HMS’ connectivity and network offering.

"We are eager to start working together and to realize the synergies between the companies and to enable each other to take the next steps on our common future journey once the transaction closes.”.

Summary of the acquisition.

• HMS has entered into a binding agreement to acquire Red Lion for a cash consideration of USD 345 million (approximately €315) , on a cash and debt free basis (Enterprise Value).
• Red Lion is a well-established US-based provider of industrial automation solutions with an innovative product portfolio with premium brands. The acquisition will significantly strengthen HMS’ presence in North America and enable cross-selling of both.
• HMS’ and Red Lion’s products through their respective market channels. The combination of HMS and Red Lion had annual sales exceeding SEK 4.4 billion (€0.39 billion) , during the twelve-month period ending on September 30, 2023, with an adjusted EBIT margin of approximately 24 percent.

The acquisition is expected to close during the first half of 2024, subject to customary regulatory approvals and closing conditions of the USA and the EU.

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