Salford, England-based Luxfer Holdings said it’s moved to buy Calgary’s Dynetek Industries, and that “the Dynetek board of directors, led by executive chairman Douglas Pigot, has unanimously recommended that Dynetek shareholders approve the transaction.”
Luxfer manufactures high-pressure gas cylinders. It has six manufacturing plants in the U.S, UK., France, and China, and a joint venture in India, making tanks for a diverse range of applications, including compressed natural gas.
Dynetek makes Type III, carbon fiber-on-aluminum CNG cylinders and fuel assemblies for buses and heavy-goods vehicles, Luxfer says, “and is a global authority on portable hydrogen containment.” It operates manufacturing facilities in Canada and Germany. Dynetek’s 2011 sales revenue was $26 million, Luxfer notes – £16 million UK.
Dynetek cylinder and system sales were just $14.33 million Canadian in 2011, down from nearly $22.3 million in 2010. Net loss for 2011 was nearly $9.59 million and Dynetek said in March that it might be acquired by India’s SV Greentech.
A Far Stronger First Quarter on 2012
Dynetek cylinder and system sales rebounded in the first quarter of this year, to better than $4.32 million, as compared with just shy of $3.1 million in the first three months of 2010. “Management continues to be in discussions with certain parties with respect to the strategic alternatives,” the firm said May 11. “Geographic expansion will be the main driver of worldwide sales growth,” Dynetek said.
According to Luxfer Group CEO Brian Purves, “The area of alternative fuel systems and transportation modules is one of the strongest growing sectors of the gas containment industry, and the acquisition of Dynetek’s intellectual property, strong brand in this area and manufacturing capacity, coupled with Luxfer’s expertise in large-scale production techniques and global distribution, will help Luxfer Group to maximize its presence in, and improve the economics of, this growing market.”
Dynetek said July 31 that the Luxfer purchase price of 24¢ per share represents a substantial premium over recent trading prices.
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Source: Luxfer and Dynetek releases, Fleets & Fuels background