International Hexagon Composites buys xperion, expands gas product portfolio

International Hexagon Composites buys xperion, expands gas product portfolio

Hexagon Composites ASA has entered into an agreement with AVANCO GmbH to acquire their subsidiary, xperion Energy & Environment, leader in Type 4 high pressure cylinders. The acquisition will enable Hexagon Composites to strengthen its global market presence and further broaden its product and technology portfolio. Hexagon Composites operates some of the world’s most advanced facilities for designing, testing and manufacturing all-composite cylinders for gas applications. By securing manufacturing capacity in Germany, it also expands its position in Europe considerably. The integrated Group will now have modern and specialized production units in Germany, USA and Norway.

The xperion group includes high-pressure composite cylinder operations for light-duty vehicles, heavy-duty trucks, transit buses and gas transportation solutions at its modern production plants in Kassel, Germany and Ohio, USA. The acquisition of xperion’s Ohio facility is pending and subject to an option clause allowing Hexagon Composites until the end of year to exercise. The enterprise value of xperion is EUR 43.5 million (approx. NOK 390 million) on a cash and debt free basis. Additionally, an earn-out payment of up to EUR 11.5 million (approx. NOK 104 million) may become payable in 2019.

“This acquisition represents another significant step in our growth strategy,” said Jon Erik Engeset, President & CEO of Hexagon Composites. “We are impressed with how xperion has developed a highly competent international organization. We are confident that the acquisition will increase our competitiveness, market penetration and shareholder value and is well-timed given the current industry conditions.”

“Hexagon Composites is one of the leading players in the composite pressure cylinder market, and the transaction will give xperion and its employees a strong industrial owner”, commented HolgerGarbrecht, CEO of AVANCO Group. “This is a future-oriented step, and we are convinced that both organizations will complement each other, enabling an optimal position in terms of markets and products.”

The environmental value proposition of CNG, biogas and hydrogen continues to stimulate demand in markets world-wide. The two companies are well positioned in the hydrogen value chain with recent orders received for car, bus and railroad applications. With this acquisition, Hexagon Composites has further strengthened its strong commitment to the alternative energy space.

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