Hexagon Composites ASA has signed an agreement to acquire the remaining 50% of Agility Fuel Solutions Holdings Inc.
In 2016, Hexagon’s and Agility Fuel Systems’ medium- and heavy-duty compressed natural gas (CNG) automotive businesses merged to create Agility Fuel Solutions, resulting in Hexagon’s 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.
The new transaction values Agility’s equity at $250 million on a 100% basis. The agreement was signed today and is expected to close in January.
The companies plan to further promote the adoption of natural gas, biogas, hydrogen, propane and electrification. The combined business will provide clean energy solutions to a range of end markets globally, including light-, medium- and heavy-duty vehicles, as well as household, industrial, gas transportation, marine and rail.
“We are really happy to have reached this milestone,” states Jon Erik Engeset, president and CEO 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.”
“Hexagon has been a strong, supportive investor in Agility for the last two years,” adds 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.”
Hexagon, headquartered in Aalesund, Norway, has production facilities in Raufoss, Norway; Kassel, Germany; Heath, Ohio; and Lincoln, Neb. In addition, the company has sales offices in Europe, North America and Asia.
Agility has production facilities in Salisbury, N.C.; Lincoln, Neb.; Fontana, Calif.; and Raufoss, Norway, with technology centers in Lincoln, Neb.; Wixom, Mich.; and Kelowna, British Columbia, and it maintains sales offices in North America, South America, India, the U.K. and Norway.