Hexagon Composites acquires remaining interest in PPG-Devold based on future earnings of the company

Hexagon Devold, a wholly owned subsidiary of Hexagon Composites, acquires PPG Industries' 50% share of the joint venture company PPG-Devold LLC in North Carolina, USA. The company was established in 2007 and has been profitable every year. The acquisition is due to PPG's desire to streamline its profile as a supplier of fibreglass.

The acquisition of PPG's share takes place according to an earn-out model where future operating profit (EBIT) is divided equally between the parties until 50% of equity as of 31.12.2012 is paid to PPG. The earn-out period is limited to five years.

Hexagon Devold will continue to produce composite reinforcements at the factory in the U.S. to supply the U.S. market.

"The acquisition will fully consolidate the company in Hexagon Devold's strategies and plans. We will also increasingly be in a position to exploit synergies and resources between companies and act as one unit under the company name Hexagon Devold," says Kåre Dybvik, Managing Director of Hexagon Devold.

Managing Director of the joint venture company, Herb Elder, will continue as head of the wholly owned subsidiary. At the same time, the company changes its name to Hexagon Devold USA.

Hexagon Devold (previously Devold AMT) is a leading international supplier of stitched, multiaxial composite reinforcements of glass and carbon fibre. The majority of the volume goes to the wind industry and the production of wind turbine blades.

For further information:
Kåre Dybvik, Managing Director, Hexagon Devold AS
Phone: + 47 916 25 725 | E-mail: kare.dybvik@hexagondevold.com

Solveig D Sæther, Communications Manager, Hexagon Composites ASA
Phone: +47 906 34 977 | E-post: solveig.saether@hexagon.no