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HMS Networks buys Red Lion Controls

Feb. 6, 2024
HMS plans to use its distributor network to also drive sales of its gateway and remote access products

To expand its presence in North America, HMS Networks AB reported Dec. 11 that it’s agreed to buy Red Lion Controls and Red Lion Europe GmbH from Spectris Group Holdings for $345 million. This acquisition is expected to close during the first half of 2024.    

“We’re happy to welcome Red Lion into the HMS Networks family. The companies are a great match when it comes to products, geographic presence, and cultural aspects,” says 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’s strong position in the North American market, and HMS with its core markets in Europe, will generate good cross-selling opportunities.”

For example, Dahlström adds that Red Lion’s Access products fit well with HMS’ Anybus and Ewon product lines, while Red Lion’s Connect products adds what HMS has been seeking for several years—a strong Ethernet switch with a strong market position. Finally, Red Lion’s Visualize products present new opportunities for HMS to explore data visualization, which is becoming more central to industrial automation, and can add value on top of HMS’ connectivity and network products. 

“We’re eager to start working together, realize the synergies between the companies, and enable each other to take the next steps on our common future journey once the transaction closes,” he says.

Because most of Red Lion’s sales occur North America, HMS plans to use its distributor network to also drive sales of its gateway and remote access products. With about 60% of its sales in Europe’s large automation markets, HMS will likewise be able to cross-sell selected parts of Red Lion’s portfolio. The acquisition is also expected to produce R&D and product development synergies in several areas of HMS and Red Lion’s offerings.

About the Author

Jim Montague | Executive Editor

Jim Montague is executive editor of Control.