Hexagon Composites has agreed to acquire 67% of a Brazilian entity to pursue compressed natural gas (CNG) fuel system 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.
Tony Bermudo will hold the remaining 33 %. 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.
“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.
The initial purchase price is $1 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 $2 million with good growth opportunities thereafter.