Hexagon Composites ASA has announced the signing of two definitive agreements with Worthington Enterprises, marking significant strategic moves for both companies.
Worthington Enterprises will acquire 100 percent of Hexagon Ragasco at an enterprise value of NOK 1,050 million. The final value may be adjusted between minus NOK 50 million to plus NOK 100 million, depending on Hexagon Ragasco’s full-year 2024 performance.
Hexagon Ragasco is a market leader in LPG composite cylinders used for leisure, household, and industrial applications, with production facilities in Norway and sales to over 100 countries worldwide. Worthington Enterprises, through its Building Products business segment, delivers products and solutions for heating, cooling, and construction applications globally and is a leader in cylinders for LPG and refrigerant gases.
“Hexagon Ragasco has been an integral part of the Hexagon Group for over 20 years, and we take immense pride in the company’s achievements to date. Worthington Enterprises is a highly respected player in our industry. This transaction will enable Hexagon Ragasco to expand into new geographies and verticals,” said Jon Erik Engeset, CEO of Hexagon Composites.
“Hexagon Ragasco is one of the pioneers of the composite cylinder,” said Jimmy Bowes, president of Building Products at Worthington Enterprises. “For over 20 years, they’ve introduced innovative products to the market that elevate expectations regarding the performance, quality, and capabilities of LPG cylinders. We have followed their growth closely and believe that their composite cylinders are a perfect complement to our existing cylinder business. We look forward to collaborating with the exceptional team at Hexagon Ragasco.”
The sale of Hexagon Ragasco is expected to close on or around June 3, 2024. This announcement concludes the strategic review initiated by Hexagon in September 2023.
In conjunction with the sale of Hexagon Ragasco, Hexagon Composites has signed an agreement to acquire a 49 percent stake in Worthington’s Sustainable Energy Solutions business segment for an enterprise value of USD 20 million on a 100 percent basis. SES is a leading European supplier of high-pressure cylinders and systems for the storage and distribution of compressed natural gas, hydrogen, and industrial gases, generating revenues of EUR 127 million and an adjusted EBITDA of EUR 2.9 million in the calendar year 2023. Worthington will retain 49 percent of the shares, while senior executives will hold the balance.
“Through our dialogue with Worthington regarding the sale of Hexagon Ragasco, we identified an opportunity within Worthington’s Sustainable Energy Solutions business. These transactions support Hexagon’s strategic focus on high-pressure, clean energy solutions,” said Engeset.
The acquisition of a 49 percent stake in SES has been finalised as of 29 May 2024.
DNB Markets and Danske Bank acted as financial advisors, and Schjødt and Saxinger Rechtanwalts served as legal advisors to Hexagon Composites for these transactions.
For more information visit www.hexagongroup.com
