HMS Networks acquires Red Lion Controls

HMS AB has announced that it has entered into a binding agreement to acquire US-based Red Lion Controls for a cash consideration of US$345 million.

Red Lion is a well-established provider of industrial automation solutions, and HMS has said that the acquisition will significantly strengthen HMS’s presence in North America and enable cross-selling of both HMS’s 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,” said Staffan Dahlström, CEO of HMS. “Red Lion’s ‘Access’ products fit well with HMS’s Anybus and Ewon product lines, while Red Lion’s ‘Connect’ offering adds what HMS has been searching for over 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 visualisation 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’s connectivity and network offering.”

Red Lion, headquartered in York, Pennsylvania, is a well-established industrial data business with a history of over 50 years. Red Lion’s main customers are active in factory automation, alternative energy, oil and gas, power and utilities, transportation and water and wastewater.

Closing of the acquisition is expected to take place during the first half year of 2024, subject to customary closing conditions.

Image: Marcel van Helten, CEO Red Lion Controls, and Staffan Dahlström, CEO HMS Networks, after signing.