HMS Networks To Acquire Red Lion, Expanding North American Presence

HMS Networks—a communications expert for industrial equipment—announced its entry into a formal agreement with test and measurement equipment specialist Spectris Group Holdings Limited to acquire Red Lion Controls.

 

The CEO of Red Lion, Marcel van Helten, and HMS CEO Staffan Dahlström shake hands after signing acquisition deal. Image used courtesy of HMS Networks 

 

Red Lion Controls

Red Lion Controls is a well-recognized industrial data provider with the primary goal of providing real-time data and visibility to improve productivity in various industries, including automated manufacturing, alternative energy, oil and gas, electricity and transport, utilities, and water and wastewater.

Red Lion's product lines center on three key categories: 

• “Access” products enhance cloud connectivity, edge intelligence, and remote device management for industrial clients, featuring items like industrial gateways, protocol converters, routers, and access points.
• “Connect” products ensure secure and reliable communication between plant operators and assets, maximizing performance and uptime with industrial Ethernet switches.
• “Visualize” products facilitate data acquisition and interaction for plant operators, optimizing performance in challenging environments and include HMI and panel meters as integral components.

 

The Ewon Talk2m cloud-operated service from HMS allows users to program their PLCs, troubleshoot problems, monitor installations, and optimize connectivity. Image used courtesy of HMS Networks

 

HMS Ewon and Anybus Products

The HMS family welcomes Red Lion with a united vision of growth and innovation in the industrial automation space.

Red Lion's access products could help improve HMS’ Ewon products. The Ewon product line from HMS focuses on remote access technology for human-machine communications. Products on offer include Flexy, Cosy, and Netbiter remote access, IIoT gateways, and secure IIoT clouds for connecting to, monitoring, and managing industrial machinery. 

In one case study from HMS, a machine-building company employed HMS’ Ewon Cosy remote router to help machine operators change the blades of its paper-splitting machine. The router works with cloud-supported Ewon Talk2m service, connecting the operator to the machine. Customers can change blades safely through their control system, accessible through the Ewon Talk2m service, and use a smartphone or tablet for access, not just the machine’s HMI.

HMS also believes Red Lion’s access and connect products will complement its Anybus product line. Additionally, HMS intends to explore the utility of Red Lion’s data visualization technology in industrial automation operations, believing it will add value to its network and connectivity offering.

 

HMS intends to grow its presence in North America with its $345 million acquisition of Red Lion. Image used courtesy of HMS Networks

 

HMS Market Expansion

The $345 million deal will likely boost HMS Network's influence in the North American market, leveraging Red Lion's well-founded distributor network to promote the former company's product lines. 

With Red Lion predominantly selling in North America and HMS enjoying a robust presence in European automation markets, the acquisition seeks to integrate market channels to maximize sales opportunities. Moreover, following the transaction, collaborative efforts are expected to result in research and development synergies, driving advancements in HMS and Red Lion product offerings.

The transaction is scheduled to close in the first half of 2024, subject to usual regulatory clearances and closing conditions.