Hexagon Composites Acquires Brazilian Fuel Systems Provider
Hexagon Composites has agreed to acquire 67 percent of a Brazilian entity to pursue fuel systems opportunities for transit buses and heavy-duty trucks. The company, to be named Hexagon Composites Brazil, will address market opportunities primarily in South America and Africa. The remaining 33 percent of the company will be held by Mr. Tony Bermudo. The Bermudo family, owner of a leading Brazilian CNG integrator, will transfer all activities concerning bus and truck systems building to Hexagon Composites Brazil.
Hexagon says the global market for CNG bus systems is growing strongly due to political priorities and stable, affordable natural gas prices. Hexagon Composites is has become a global leader in type 4 CNG bus fuel systems through Hexagon Bus Systems in Norway and Hexagon Lincoln in the U.S.
“Brazil houses several of the world’s leading OEMs with significant bus building capacity,” said Jon Erik Engeset, CEO of Hexagon Composites ASA. “We look forward to strengthening our relationships with customers and suppliers in the region.”
The initial purchase price is $1 million, and Hexagon Composites will increase its ownership to 100 percent according to an earn-out model at a later stage.