Hexagon Composites to buy 67% of Brazilian business for $1 millionStaff 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.
Acquisition The global market for CNG bus systems is growing strongly
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. ■