02.04.2024 16:00:04 - dpa-AFX: GNW-Adhoc: HMS Networks has completed the acquisition of Red Lion Controls
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HMS Networks AB (publ) ("HMS") has today completed the previously announced
acquisition of 100 percent of the shares in Red Lion Controls Inc. and Red Lion
Europe GmbH as well as certain assets in other jurisdictions ("Red Lion
Controls").
On December 11, 2023, HMS announced that an agreement had been signed with
Spectris regarding the acquisition of Red Lion Controls for a cash consideration
of USD 345 million, on a cash and debt free basis (Enterprise Value). The
acquisition has now been completed, significantly expanding HMS' presence in
North America and complementing HMS' product offering. The consolidation of Red
Lion Controls into HMS, as of April 1(st), 2024, is expected to be accretive to
HMS' earnings per share (excluding any non-cash amortization impacts from the
acquisition).
"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. 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 Industrial ICT
(Information- and Communication Technology) Market.", says Staffan Dahlström,
President and CEO of HMS.
The acquisition was financed through a term loan and a revolving credit
facility, in a total amount of USD 225 million, and a bridge loan facility in an
amount of USD 120 million. The bridge loan facility is planned to be repaid with
the proceeds from a directed share issue. HMS' largest shareholder, Investment
AB Latour, has committed to, and the third largest shareholder, AMF Fonder, has
declared its intention to, invest in the above-mentioned share issue up to an
amount corresponding to their respective ownership levels.
HMS will release its first quarter report of 2024 on Tuesday April 16, 2024. On
the same day, President and CEO Staffan Dahlström and CFO Joakim Nideborn will
present the report in a conference call for press and analyst. An invitation to
the conference call will be distributed separately.
For more information, please contact:
Staffan Dahlström, CEO HMS, +46 (0)35 17 29 01
Joakim Nideborn, CFO HMS, +46 (0)35 710 69 83
HMS Networks AB (publ) is a market-leading provider of solutions in industrial
information and communication technology (Industrial ICT). HMS develops and
manufactures products under the Anybus®, Ixxat®, Ewon® and Intesis® brands.
Development takes place at the headquarter in Halmstad and also in Ravensburg,
Nivelles, Igualada, Wetzlar, Buchen, Delft, Sibiu, Rotterdam and Bilbao. Local
sales and support are handled by offices in Germany, USA, Japan, China,
Singapore, Italy, France, Spain, the Netherlands, India, UK, Sweden, South
Korea, Australia, UAE and Vietnam, as well as through a worldwide network of
distributors and partners. HMS employs over 800 people and reported sales of SEK
3,025 million in 2023. HMS is listed on the NASDAQ OMX in Stockholm in the Large
Cap segment and Telecommunications sector.
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