NetComposites
Attwater

Hexagon Composites Acquires Fuel Systems Integrator in Brazil

16 February 2016

Hexagon Composites has agreed to acquire 67% of a Brazilian entity to pursue fuel systems opportunities for transit buses and heavy-duty trucks.

Hexagon Composites explains that the company, to be named Hexagon Composites Brazil, will address market opportunities primarily in South America and Africa. The remaining 33% will be held by Mr. Tony Bermudo. The Bermudo family, owner of a leading Brazilian Compressed Natural Gas (CNG) integrator, will transfer all activities concerning bus and truck systems building into Hexagon Composites Brazil.

According to Hexagon Composites, the global market for CNG bus systems is growing strongly due to political priorities enhanced by stable and attractive natural gas prices, combined with increasing concerns over environmental emissions and particulates. Hexagon Composites is, through Hexagon Bus Systems in Norway and Hexagon Lincoln in the US, the global leader in type 4 CNG bus fuel systems, and the Brazilian footprint enhances this leadership position further.

"Brazil houses several of the world's leading OEMs with significant bus building capacity. We look forward to strengthening our relationships with customers and suppliers in the region," says Jon Erik Engeset, CEO of Hexagon Composites.

"We are very happy to become part of the Hexagon Composites Group. Access to the leading tank technology on the market will significantly strengthen our competitiveness and broaden our range geographically and segment wise," says Tony Bermudo, Managing Director of Hexagon Composites Brazil.

The initial purchase price is USD 1 million (approx. NOK 8.5 million), and Hexagon Composites will increase its ownership to 100% according to an earn-out model at a later stage. Estimated turnover for Hexagon Composites Brazil in 2016 is expected to be in the range of USD 2 million (approx. NOK 17 million) with good growth opportunities thereafter.

 






Related / You might like...

Dilutec Celebrates 23 Years

Brazilian gelcoat and thinner manufacturer Dilutec celebrates 23 years in business this month.

Visitor Registration Opens for Advanced Engineering 2018

Advanced Engineering 2018, the UK’s annual gathering of OEMs and engineering supply chain professionals, has opened registration for its 10th anniversary show. The first 50 people signing up will be offered a free Ultra High Capacity Power Bank for mobile phones and laptops, to be picked up at the show.

Prodrive Achieves IATF 16949 Automotive Standard

Prodrive Composites reports that it is the first UK carbon composites business to attain full certification against the newly released IATF 16949:2016 automotive standard.