HMS Networks has completed the acquisition of Red Lion Controls and carried out a directed share issue

On 2 April, 2024, HMS Networks AB (“HMS“) completed the acquisition of all shares in Red Lion Controls Inc. and Red Lion Europe GmbH.

The acquisition was financed through a long-term loan facility 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.

Based on an authorization to issue shares, granted by the general meeting, the board of directors of HMS resolved, on 17 April, 2024, on a directed issue of 3,500,000 new shares at a subscription price of SEK 400 per share, consequently raising gross proceeds of SEK 1,400 million before deduction of transaction costs. The subscription price, which represents a discount of approximately 1 per cent compared to the closing price on 17 April 2024, was determined through an accelerated book-building procedure directed to Swedish and international institutional investors.

HMS will use the proceeds from the share issue to repay the above-mentioned bridge loan facility and to ensure an efficient capital structure.

HMS Networks was advised by Mannheimer Swartling in relation to Swedish and US law in the acquisition and the share issue, with support from Cravath, Swaine & Moore LLP regarding certain US regulatory issues related to the acquisition (FDI/Competition).