RSS   Newsletter   Contact   Advertise with us

Hexagon Composites to buy 67% of Brazilian business for $1 million

Share on Twitter Share on LinkedIn
Staff writer ▼ | February 15, 2016
Hexagon Composites will acquire 67% of a Brazilian entity to pursue fuel systems opportunities for transit buses and heavy-duty trucks.
Hexagon Composites
Acquisition   The global market for CNG bus systems is growing strongly
The company, to be named Hexagon Composites Brazil, will address market opportunities primarily in South America and Africa. The remaining 33 % will be held by Tony Bermudo.

The Bermudo family, owner of a 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 U.S., the global leader in type 4 CNG bus fuel systems, and the Brazilian footprint enhances this leadership position further.

The initial purchase price is $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 $2 million (approx. NOK 17 million) with good growth opportunities thereafter.


 

MORE INSIDE POST