HMS Networks acquires Red Lion Controls
Swedish provider of industrial information and communication technology, HMS Networks, has entered into an agreement with Spectris Group to acquire the Red Lion Controls business.
HMS has entered into a binding agreement to acquire US-based provider of industrial automation solutions Red Lion Controls for a cash consideration of USD 345 million.
The acquisition is set to significantly strengthen HMS’ presence in North America and enable cross-selling of both HMS’ and Red Lion’s products through their respective market channels.
“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. 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, ” says Staffan Dahlström, CEO of HMS in a press release.
Red Lion, headquartered in York, Pennsylvania, United States, is a well-established industrial data business with a 50-year-plus history. The company's main customers are active in factory automation, alternative energy, oil and gas, power and utilities, transportation and water and wastewater segments. Red Lion has four development sites, located in York, Pennsylvania, Mobile, Alabama, Dinkelsbühl, Germany and Pune, India, and manufacturing sites located in York and Dinkelsbühl. The company employs about 400 people globally, of which about 300 employees in the United States.
The acquisition is also expected to have R&D and product development synergies on several parts of both HMS’ and Red Lion’s offerings which will be explored further after closing of the transaction.
HMS states in the press release that the company expects to close the acquisition during the first half of 2024, subject to customary regulatory approvals and closing conditions.