Hexagon Acquires Remaining 50% Stake in Agility Fuel Systems

Hexagon Composites ASA (Aalesund, Norway) is acquiring the remaining 50% of Agility Fuel Solutions Holdings Inc. (Costa Mesa, Calif.). The transaction values Agility’s 100% equity at $250 million. Signing of the agreement took place Nov. 8. Closing is expected in January 2019.

Hexagon said the acquisition brings together two leading players in clean energy, and that by combining, the companies will become an even stronger force in driving energy transformation globally by promoting alternative fuels such propane, natural gas, biogas, hydrogen, and electrification. The combined business will provide clean energy solutions to a wide range of end markets around the world, including household, industrial, gas transportation, marine, rail, and light-, medium-, and heavy-duty vehicles. Hexagon is a provider of composite pressure vessel technology for mobility and storage applications.

The company promotes the transition of energy toward a low-carbon society. It has production facilities in Raufoss, Norway; Kassel, Germany; Heath, Ohio; and Lincoln, Neb.

Agility Fuel Systems’ and Hexagon’s medium- and heavy-duty CNG automotive businesses merged in 2016, resulting in Hexagon owning 50% of Agility. The companies have delivered more than half a million cylinders and over 40,000 fuel systems to customers around the globe.

Agility has production facilities in Salisbury, N.C.; Lincoln, Neb.; Fontana, Calif.; and Raufoss, Norway, with technology centers in Lincoln; Wixom, Mich.; and Kelowna, B.C. Canada. It maintains sales offices in North America, South America, India, the United Kingdom, and Norway.

(SOURCE: The Weekly Propane Newsletter, November 26, 2018)

The companies comment that the increasing alignment of economic and environmental benefits is driving market adoption of cleaner drive train alternatives in commercial vehicle markets. Heavy- and medium-duty truck, transit bus, and refuse truck fleet owners are acting on their emissions reduction strategies with greater investment in alternative fuel vehicles and infrastructure. In turn, vehicle manufacturers are motivated to provide more offerings, including propane, natural gas, biogas, battery-electric, and hydrogen fuel cell electric vehicles.