February 14, 2016 - 5:08 PM EST
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Hexagon Composites acquires fuel systems integrator in Brazil


Hexagon Composites ASA (HEX.OL) has agreed to acquire 67 % of a Brazilian entity
to pursue fuel systems opportunities for transit buses and heavy-duty trucks.
The company, to be named Hexagon Composites Brazil Ltda, will address market
opportunities primarily in 
South America
 and 
Africa
. The remaining 33 % will be
held by Mr. Tony Bermudo. The Bermudo family, owner of a leading Brazilian
Compressed Natural Gas (CNG) integrator, will transfer all activities concerning
bus and truck systems building into Hexagon Composites Brazil Ltda.

The global market for CNG bus systems is growing strongly due to political
priorities enhanced by stable and attractive natural gas prices, combined with
increasing concerns over environmental emissions and particulates. Hexagon
Composites is, through Hexagon Bus Systems in 
Norway
 and Hexagon Lincoln in the
US, the global leader in type 4 CNG bus fuel systems, and the Brazilian
footprint enhances this leadership position further.

"
Brazil
 houses several of the world's leading OEMs with significant bus building
capacity. We look forward to strengthening our relationships with customers and
suppliers in the region", says Jon Erik Engeset, CEO of Hexagon Composites ASA.

"We are very happy to become part of the Hexagon Composites Group. Access to the
leading tank technology on the market will significantly strengthen our
competitiveness and broaden our range geographically and segment wise", says
Tony Bermudo, Managing Director of Hexagon Composites Brazil Ltda.

The initial purchase price is USD 1 million (approx. NOK 8.5 million), and
Hexagon Composites will increase its ownership to 100% according to an earn-out
model at a later stage. Estimated turnover for Hexagon Composites Brazil Ltda in
2016 is expected to be in the range of USD 2 million (approx. NOK 17 million)
with good growth opportunities thereafter.


For more information:
Tore Johan Fjell, Senior Vice President, Hexagon Composites ASA
Telephone: +47 920 33 337 | [email protected]

Solveig D Saether, Communication Manager, Hexagon Composites ASA
Telephone: +47 906 34 977 | [email protected]

Hexagon Composites ASA is a publicly listed company with its headquarters in
Aalesund, 
Norway
. The Group develops and produces composite pressure cylinders
and systems for storage and transportation of various gases.



This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.



This announcement is distributed by GlobeNewswire on behalf of 
GlobeNewswire clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
    
Source: Hexagon Composites ASA via GlobeNewswire
[HUG#1986016]

 
  

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Source: Equities.com News (February 14, 2016 - 5:08 PM EST)

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