HMS Networks realize immediate cost synergies and launches cost-saving program to streamline the organization
April 16 2024 - 1:30AM
UK Regulatory
HMS Networks realize immediate cost synergies and launches
cost-saving program to streamline the organization
Following the closing of the acquisition of Red
Lion Controls (“Red Lion”) on April 2, 2024, HMS and Red Lion have
started the work of realizing synergies between the companies and
hereby announces immediate cost synergies. Additionally, as a
result of strong organic growth the last few years, and a dampened
market demand experienced over the recent quarters and a slower
market recovery, HMS is now initiating a cost-saving program to
reduce the costs and streamline the organization to be positioned
for further growth.
The main initiatives of the program will be to
realize early cost synergies from the acquisition of Red Lion and a
restructuring of the Anybus organization, but also a fine-tuning of
the European organization. The program is expected to affect
approximately 45 positions in total, of which approximately 25
positions in Sweden, and result in cost savings of about SEK 30
million in 2024, with a full year effect of about SEK 55 million.
As a result of the program, HMS will commence negotiations with
labor unions in Sweden.
The expected cost savings will gradually
materialize during the second quarter of 2024, with full impact
from the start of the third quarter of 2024. As a result of the
cost-saving program, the company expects one-time restructuring
costs of approximately SEK 35 million during the second
quarter.
For more information, please contact:
Staffan Dahlström, CEO HMS, +46 (0)35 17 29 01
Joakim Nideborn, CFO HMS, +46 (0)35 710 69 83
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.
- HMS Networks launches cost-saving program
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