HMS Industrial Networks GmbH, a wholly owned subsidiary of the HMS Networks AB (publ) group, has today entered into binding agreement to divest all shares in Red Lion Europe GmbH, located in Dinkelsbühl, Germany for a cash consideration of EUR 5 million. Business operations are continued by the company's long-standing managers.
Red Lion Controls Europe GmbH is a manufacturer of secure remote access and industrial IoT and security products currently sold under the MB Connect Line brand. The rationale for the divestment is to streamline the global offer of remote access, remote data and remote monitoring solutions under the Ewon brand.
The business today employs about 30 people with Net Sales of EUR 5 million for the twelve-month-period ending September 30, 2024.
"We are thankful for the contribution made by the team at Red Lion Controls Europe GmbH during our short period of ownership and wish them all the best for the future." says Staffan Dahlström, CEO of HMS.
Closing of the transaction is expected to take place within two months. The divestment will have an insignificant impact on HMS' earnings per share.
For more information, please contact:
Staffan Dahlström, CEO HMS, +46 (0)35 17 29 01
Joakim Nideborn, CFO HMS, +46 (0)35 710 6983
HMS Networks AB (publ) is a market-leading provider of solutions in Industrial Information and Communication Technology (Industrial ICT) and employs over 1 200 people. Local sales and support are handled through over 20 sales offices all over the world, as well as through a wide network of distributors and partners. HMS reported sales of SEK 3,025 million in 2023 and is listed on the NASDAQ OMX in Stockholm in the Large Cap segment and Telecommunications sector.
Attachment
- PRM HMS divests MB Connect Line (https://ml-eu.globenewswire.com/Resource/Download/0c4102db-f048-44c5-9bdc-0df5f5cfb771)
