HMS Networks acquires Red Lion Controls
HMS Networks AB (publ) (“HMS”), a global provider of industrial information and communication technology, has entered into a binding agreement to acquire Red Lion Controls for a cash payment of USD 345 million (approx. SEK 3.6 billion).
Red Lion is a well-established U.S.-based provider of industrial automation solutions. HMS acquires 100 percent of the shares in Red Lion Controls Inc. and Red Lion Europe GmbH as well as certain assets in other jurisdictions, which significantly expands HMS’ presence in the North American market. The acquisition will be financed through a combination of new debt and equity, consisting of a term loan and a revolving credit facility of USD 225 million in total, and a bridge loan facility of USD 120 million which is expected to be repaid through a share issue following the completion of the acquisition.
The acquisition is subject to customary closing conditions, including receipt of certain regulatory approvals, and is expected to be completed in the second quarter of 2024.
HMS was advised by Mannheimer Swartling with respect to U.S. and Swedish matters in the transaction, with U.S. regulatory support (FDI / Competition) by Cravath, Swaine & Moore LLP.
