Hexagon Composites ASA has signed an agreement to acquire the remaining 50% of Agility Fuel Solutions Holdings Inc. By bringing together two leading players in clean energy, the two companies will become an even stronger force in driving energy transformation globally by promoting the alternatives of natural gas, biogas, hydrogen, propane and electrification. The combined business will provide clean energy solutions to a wide range of end markets around the world, including household, industrial, gas transportation, marine, rail, and light, medium and heavy duty vehicles.
The signing of the agreement took place on November 8 with closing expected in January 2019. The transaction values Agility’s equity at $250 million (NOK 2.1 billion) on a 100% basis.
Hexagon is the world leading provider of composite pressure vessel technology for a wide range of mobility and storage applications. It promotes energy transition towards a low-carbon society. Headquartered in Aalesund, Norway, the company has production facilities in Raufoss, Norway; Kassel, Germany; Heath, Ohio; and Lincoln, Nebraska. In addition, it has its sales offices in Europe, North America and Asia.
Agility Fuel Systems and Hexagon’s medium and heavy duty CNG automotive businesses merged in 2016 to create Agility Fuel Solutions, resulting in Hexagon owning 50% of Agility. The companies have delivered more than half-a-million 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 centers in Lincoln, Nebraska; Wixom, Michigan; and Kelowna, British Columbia, and maintains sales offices in North America, South America, India, the UK and Norway.
“We are really happy to have reached this milestone”, said 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 favorable, 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 in commercial vehicle markets. Heavy- and medium-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. We share a common vision, values and strategic goals and look forward to an exciting future together,” stated Kathleen Ligocki, CEO of Agility. “For our customers, this will provide Agility access to greater global resources and scale across a broad portfolio of sustainable energy technologies.”