Completion of portfolio rationalisation with divestment of Red Lion Controls

11 Dec 2023
Press release
4 minute read
  • Divestment of Red Lion Controls (Red Lion) for $345 million
  • Servomex to be reported as part of Spectris Scientific following completion
  • Launch of share buyback programme of up to £150 million

 Divestment of Red Lion

 11 December 2023 – Spectris plc (SXS: LSE) ('Spectris' or 'the Group' or 'the Company'), the expert in providing insight through precision measurement, today announces the sale of Red Lion Controls ('Red Lion') to HMS Networks (HMS) for $345 million (£286 million).

Red Lion provides industrial organisations innovative software and hardware solutions to access and connect disparate assets using the industrial ethernet and to enable visualisation of valuable data.  For the 2022 financial year, Red Lion generated sales of £91.3 million, adjusted operating profit of £16.0 million and, as at 30 June 2023, the book value of Red Lion’s gross assets was £105.5 million.  The consideration for the sale will be settled in cash subject to customary adjustments for working capital, cash and debt and is subject to customary completion conditions and regulatory approvals, with completion expected to take place in the first half of 2024.  After allowing for tax, the net proceeds from the sale are expected to be approximately $275 million (£228 million).

Portfolio rationalisation complete

This divestment increases the total net sale proceeds over the past 5 years to £1.2 billion and completes the portfolio rationalisation envisaged in 2019.  Following completion, Servomex, which is currently reported alongside Red Lion as part of our ‘Other’ division, will be reported as part of the Spectris Scientific division, reflecting its position as a world leader in the provision of specialist premium gas and moisture analysis instruments and solutions.

Strong balance sheet provides capital allocation flexibility

 The Group remains committed to driving sustainable organic growth, with significant investment in R&D, while continuing to use our strong balance sheet to compound growth through value-enhancing acquisitions, ranging from early-stage technologies and bolt-ons, to larger acquisitions, where we continue to maintain an active pipeline of opportunities. 

 Having considered the future acquisition pipeline alongside our balance sheet position including the expected proceeds from the Red Lion divestment, we are today announcing a further share buyback programme of up to £150 million, with the first tranche of £50 million to commence before the end of this financial year. 

Andrew Heath, Chief Executive, said:

“Since 2019, we have transformed Spectris into a higher-quality, more resilient business, focused on attractive markets benefiting from a number of structural growth trends.  Following today’s announcement and with Servomex being reported as part of Spectris Scientific, we have two great premium precision measurement businesses with attractive growth trajectories, aligned to markets with a strong sustainability focus.  I would like to thank the whole Red Lion team for their contribution to Spectris and wish them all well for the future.”

Spectris will publish its full-year results for 2023 on 29 February 2024.

The person responsible for arranging the release of this announcement on behalf of Spectris is Rebecca Dunn, Company Secretary.

For and on behalf of Spectris plc

LEI Number: 213800Z4CO2CZO3M3T10


Spectris plc

Mathew Wootton

Investor Relations Director
+44 7500 078880


Martin Robinson/Giles Kernick

+44 20 7353 4200

About Spectris

Spectris combines precision with purpose, delivering progress for a more sustainable world. We provide critical insights to our customers through premium precision measurement solutions combined with technical expertise and deep domain knowledge. Precision is at the heart of what we do - our leading, high-tech instruments and software equip our customers to solve some of their greatest challenges to make the world cleaner, healthier and more productive. We are focused on two key divisions – Spectris Scientific and Spectris Dynamics, which are placed in technology-driven end markets, with strong fundamentals and attractive growth trajectories.  We have leading market positions in premium segments and employ 7,500 people located in more than 30 countries, all united behind our purpose to deliver value beyond measure for all our stakeholders. For more information, visit

About HMS Networks

Headquartered in Sweden, with operations in 18 countries, HMS is a world leader in industrial information and communication technology providing a range of products that enable industrial equipment to communicate and share information.