Hexagon Composites acquires CNG fuel system integrator in Brazil

Hexagon Composites ASA 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 Tony Bermudo. The Bermudo family, owner of a leading Brazilian 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”, said 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”, said 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.

https://www.ngvjournal.com/hexagon-composites-acquires-fuel-systems-integrator-in-brazil/