HMS completes acquisition of Red Lion

April 2, 2024
Automation company looks to broaden reach in Europe and North America

HMS Networks, which develops and manufactures products under the Anybus, Ixxat, Ewon and Intesis brands, finalized the acquisition of Red Lion Controls from Spectris Group. The two companies are now one entity and can start working together on common go-to-market strategies and product offerings.

The acquisition, which was first announced on December 11, has now been approved. This means that HMS Networks now has 1,200 employees in 18 countries. Most staff are stationed in the United States, Sweden and Germany.

HMS and Red Lion promises no initial changes for customers. The HMS and Red Lion company names remain unchanged, and product brands will be marketed and sold as before through the same channels. Production and shipping are handled from the HMS and Red Lion entities, respectively. Contact details and email addresses remain, with the exception of India, where Red Lion staff will get an address.

Going forward, the merger of the two companies will widen the American market for HMS and the European market for Red Lion. The greatest proportion of Red Lion’s sales comes from North America, through a distributor network that HMS will be able to utilize to drive sales of HMS’ gateway and remote access offering. With about 60% of its sales in the automation markets in Europe, HMS will be able to cross-sell selected parts of the Red Lion offering in Europe.

“We are thrilled to welcome all new employees and valued customers of Red Lion to the HMS Networks family, marking an exciting new chapter in our journey,” said Staffan Dahlström, president and CEO of HMS (Figure 1). “As we now jointly initiate the integration process, we look forward to leveraging our combined strengths, shared values and commitment to delivering exceptional customer value. Over the next few quarters, our focus will be on ensuring a seamless integration and actively pursuing synergies between our companies. Together, we look forward to accelerating our position in the North American market.”