Spectris, the precision-measurement specialist, has announced the sale of its Red Lion Controls business to HMS Networks for a total of $345 million. This sale marks a significant step for Spectris, as it completes the portfolio rationalization plan that was set in motion in 2019. Over the past five years, Spectris has generated GBP1.2 billion in net sale proceeds.
Red Lion Controls is renowned for providing industrial organizations with cutting-edge software and hardware solutions that enable asset connectivity through industrial ethernet and offer advanced data visualization capabilities. The acquisition by HMS Networks is expected to be finalized in the first half of 2024, according to a separate statement released by the company.
As part of this strategic move, Spectris will redirect its focus on its remaining business, Servomex, which will now become an integral part of its Scientific division. Additionally, Spectris has also unveiled plans to initiate a buyback program for its shares, with a total value of up to GBP150 million ($188.2 million). The first tranche of this buyback program, worth GBP50 million, is set to commence before the end of this calendar year.
Overall, this sale and portfolio rationalization signify a pivotal moment for Spectris as it sharpens its focus and strengthens its position in the precision-measurement industry.