HMS Networks Acquires Red Lion Controls

The Swedish industrial communications technology manufacturer HMS Networks is going to acquire Red Lion Controls, a US-based manufacturer of industrial automation solutions. HMS Networks has reached an agreement to this effect with Red Lion's parent company Spectris Group Holdings.

Under the terms of the agreement, HMS Networks will acquire 100 per cent of the shares in Red Lion Controls Inc. and Red Lion Europe GmbH as well as certain assets in other countries. With the acquisition of Red Lion Controls, HMS Networks aims to expand its presence in the North American market and to complement its product and solution offering. "The product offerings of the two companies are complementary and have limited overlap," says Staffan Dahlström, CEO of HMS Networks.

Red Lion Controls has four development sites in York/Pennsylvania (USA), Mobile/Alabama (USA), Dinkelsbühl (Germany) and Pune (India) as well as production sites in York and Dinkelsbühl. The company employs around 400 people worldwide, 300 of whom are based in the USA. The Dinkelsbühl site is the former MB connect line GmbH, which was taken over by Red Lion Controls in April 2022.

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