Type IV Cylinders for Light Duty Vehicles in Germany,
Hexagon Has Option on the New xperion Plant in Ohio
Norway’s Hexagon Composites, fresh on the heels of a merger with Agility for Type IV compressed natural gas cylinders and CNG fuel storage assemblies for heavy duty vehicles, is moving to acquire Type IV cylinder manufacturer xperion to improve its position in light duty natural gas vehicles.
Hexagon disclosed an agreement with Avanco GmbH to acquire xperion Energy & Environment this morning. The total net cash consideration for the transaction is approximately 40 million euros, Hexagon said, approximately $44.9 million U.S. at current rates.
The merger forming Agility Fuel Solutions closed yesterday (F&F, October 3).
“This acquisition represents another significant step in our growth strategy,” Hexagon Composites president and CEO Jon Erik Engeset says in the announcement. “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.”
Light Duty NGVs in Europe
xperion manufactures lightweight all-composite Type IV CNG tanks in Kassel, Germany. “By securing manufacturing capacity in Germany, Hexagon Composites is expanding its position in Europe considerably,” states today’s release.
“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,” Avanco CEO Holger Garbrecht says in the Hexagon release.
xperion’s focus in Kassel is on CNG cylinders for light duty vehicles, and cylinders for hydrogen and mobile pipelines. “The environmental value proposition of CNG, biogas and hydrogen continues to stimulate demand in markets worldwide, Hexagon says.
“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.
‘Not in Agility’s Domain’
Given its light duty and hydrogen emphases, and mobile pipelines, the xperion operation in Germany is “not in Agility’s domain,” Engeset told F&F.
xperion in Ohio, on the other hand, is “partly in Agility’s domain.
“That’s why we have not yet acquired Ohio but have an option till the end of the year,” he says, “allowing us to discuss with all stakeholders including Agility.”
Cooperation, Not Competition
“We at Agility Fuel Solutions will work with Hexagon to transition as many of the [medium and heavy duty NGV] customers as possible to Agility,” says Marc Meyer, the new marketing and strategic sourcing director for Agility.
“Both Hexagon and Agility will use the negotiated option to evaluate the xperion Ohio operations,” he says: “Hexagon and Agility each have defined market segments and there is no intention that the two companies compete with each other.
“On the contrary,” Meyer told F&F, “we view this as an opportunity to continue our close collaboration to leverage such synergies as cooperative purchasing.”
xperion reported at ACT Expo 2015 in Dallas that its all-new 50,000-square-foot plant in Heath, Ohio had commenced production (F&F, May 12, 2015).
The xperion group had net sales of 39 million euros in 2015, Hexagon says – approximately $43.7 million U.S. at current rates.
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Source: Hexagon Composites with Fleets & Fuels follow-up