Hexagon Composites has signed an agreement to acquire the remaining 50% of Agility Fuel Solutions, strengthening its position as a leading global gas fuel solutions provider.
Hexagon Composites is adapting its composite pressure vessel technology for a range of mobility and storage applications.
“We are really happy to have reached this milestone,” says Jon Erik Engeset, CEO and President of Hexagon. “We believe the timing to be optimal. Fuel price spreads are back at attractive levels, payback times are favourable, and the global focus on the environment has never been stronger. Our combined solutions portfolio and expert teams represent a unique value proposition to the markets.”
The increasing alignment of economic and environmental benefits is driving market adoption of cleaner drivetrain alternatives. Heavy-duty truck, transit bus and refuse truck fleet owners are acting on their emissions reduction strategies with greater investment in alternative fuel vehicles and infrastructure. In turn, vehicle manufacturers are motivated to provide more offerings, including bio- and natural gas, propane, battery electric and hydrogen fuel cell electric vehicles.
“Hexagon has been a strong, supportive investor in Agility for the last two years,” states Kathleen Ligocki, CEO of Agility. “We share a common vision, values and strategic goals and look forward to an exciting future together. For our customers, this will provide Agility access to greater global resources and scale across a broad portfolio of sustainable energy technologies.”
Agility Fuel Systems and Hexagon’s medium and heavy duty CNG automotive businesses merged in 2016 to create Agility, resulting in Hexagon owning 50% of Agility. The companies have delivered more than 500,000 cylinders and over 40,000 fuel systems to customers around the globe.
Agility has production facilities in Salisbury, North Carolina, Lincoln, Nebraska, Fontana, California and Raufoss, Norway with technology centres in Lincoln, Nebraska, Wixom, Michigan and Kelowna, British Columbia. Agility maintains sales offices in North America, South America, India, the UK and Norway. The company will report Agility’s financial results as a separate business area, fully consolidated into Hexagon’s accounts.
Agility reported revenues of US$157.3 million (NOK1.3 billion) in 2017. The fiscal year 2018 financial results are expected to exceed those of 2017, with a strong uptick in the second half of 2018. The positive trajectory is also expected to continue in 2019.
“This acquisition is significantly accretive to our consolidated results and, accordingly, it should be simpler for investors to value Hexagon,” reports David Bandele, CFO of Hexagon.
The signing of the agreement took place on 8 November with closing expected in January 2019.
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