The Deal Is Expected to Close in This Year’s Third Quarter,
New Multinational Entity to Be Called Agility Fuel Solutions
Southern California’s Agility Fuel Systems and Norway-based Hexagon Composites said today that Agility will merge with Hexagon’s CNG Automotive Products division, which includes medium- and heavy-duty vehicle composite cylinder manufacturing operations and its bus systems business unit, to form Agility Fuel Solutions.
“The new entity will be owned equally by Hexagon Composites and Agility’s current investors,” states a release. It will manufacture both compressed natural gas cylinders and the assemblies to put them to use onboard vehicles.
“Agility Fuel Solutions will continue to transform the global medium- and heavy-duty vehicle industry with clean fuel technologies,” the announcement states. The transaction is expected to close in the third quarter of 2016.
“This merger combines two market leaders with strong backgrounds in engineering creativity, profitable growth and operational excellence,” Agility CEO Kathleen Ligocki, who has been named CEO of the newly merged company, says in the announcement.
The two companies are already close, having announced a joint venture for the use of Hexagon’s lightweight Type IV all-composite compressed natural gas fuel cylinders in Agility fuel assemblies, at ACT Expo two years ago (F&F, May 6, 2014).
“The merger is uniquely positioned to drive innovation in the industry, while better serving the global market and expanding its product offerings worldwide,” the companies said today.
“This transaction is a natural progression of our existing joint venture arrangement and will expand our ability to create unique value for our customers by deepening our technical capabilities and expanding our reach globally,” said Sam Gabbita, general partner at Element Partners, the lead investor for Agility Fuel Systems.
‘Global Green Shift’
“Natural gas is a key component of the global green shift, and we remain committed to providing the industry with the highest quality products to optimize its use,” said Jon Erik Engeset, president and CEO of Hexagon Composites in Norway.
“The strategic integration of fuel systems and cylinders will provide value by reducing up-front costs for clean technology, accelerating commercialization of new product ideas, and driving faster returns on investments,” states the merger release. The combined company will have production sites in the U.S., Norway, and Brazil, with technical centers in Lincoln, Neb. and Kelowna, B.C.
Cylinders to Use, Cylinders to Sell
Agility Fuel Solutions will manufacture cylinders for use in its onboard fuel cylinder assemblies, as well as for direct sale with offices in the U.S., Canada, Latin America, Norway, India, and Southeast Asia.
Hexagon’s mobile pipeline, hydrogen products and light-duty vehicles units will continue to operate as Hexagon Composites.
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Source: Agility & Hexagon with Fleets & Fuels follow-up