Hexagon to acquire Agility Fuel Solutions
Hexagon Composites (Hexagon) has signed an agreement to acquire the remaining 50 percent of Agility Fuel Solutions (Agility).
“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 favourable, 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. Heavy-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.”
Agility Fuel Systems and Hexagon’s medium and heavy duty CNG automotive businesses merged in 2016 to create Agility, resulting in Hexagon owning 50 percent of Agility. The companies have delivered more than half a million cylinders and over forty thousand fuel systems to customers around the globe.
Agility has production facilities in Salisbury, North Carolina, Lincoln, Nebraska, Fontana, California and Raufoss, Norway with technology centres in Lincoln, Nebraska, Wixom, Michigan and Kelowna, British Columbia. Agility maintains sales offices in North America, South America, India, the United Kingdom and Norway. The company will report Agility’s financial results as a separate business area, fully consolidated into Hexagon’s accounts.
Agility reported revenues of $157.3m in 2017, with adjusted EBITDA of $14.7m and reported EBITDA of $9.5m. The fiscal year 2018 financial results are expected to exceed those of 2017, with a strong uptick in the second half of 2018. The positive trajectory is also expected to continue in 2019.
“This acquisition is significantly accretive to our consolidated results and, accordingly, it should be simpler for investors to value Hexagon,” said David Bandele, CFO of Hexagon.
The transaction values Agility’s equity at $250m on a 100% basis. The signing of the agreement took place on November 8 with closing expected in January 2019.
For more information visit: www.hexagon.no
19th November 2018