Hexagon Composites acquires fuel systems integrator in Brazil
Hexagon Composites ASA (HEX.OL) has agreed to acquire 67 % of a Brazilian entity to pursue fuel systems opportunities for transit buses and heavy-duty trucks. The company, to be named Hexagon Composites Brazil Ltda, 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 Ltda.
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 ASA.
"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 Ltda.
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 Ltda in 2016 is expected to be in the range of USD 2 million (approx. NOK 17 million) with good growth opportunities thereafter.
For more information:
Tore Johan Fjell, Senior Vice President, Hexagon Composites ASA
Telephone: +47 920 33 337 | tore.fjell@hexagon.no
Solveig D Saether, Communication Manager, Hexagon Composites ASA
Telephone: +47 906 34 977 | solveig.saether@hexagon.no
Hexagon Composites ASA is a publicly listed company with its headquarters in Aalesund, Norway. The Group develops and produces composite pressure cylinders and systems for storage and transportation of various gases.