Hexagon Composites Completes Full Acquisition of Worthington's Sustainable Energy Solutions
Hexagon Composites Completes Full Acquisition of Worthington's Sustainable Energy Solutions
In a significant move towards enhancing its portfolio, Hexagon Composites ASA has finalized the acquisition of the Sustainable Energy Solutions (SES) alternative fuels business from Worthington Enterprises. This strategic acquisition follows Hexagon's previous announcement regarding its acquisition of a 49% stake in SES, marking a pivotal shift in the company's expansion plans within the European market.
Overview of the Acquisition
The full acquisition of the alternative fuels segment, known as SES Composites, represents a valued transaction of approximately EUR 11.7 million on an enterprise value basis. The deal involves a preliminary net purchase price of EUR 6.1 million, with compensation partially settled through shares of Hexagon Composites and Hexagon Purus, aiming to bolster Hexagon's influence in the clean energy sector. Additionally, Worthington will receive a substantial number of shares in Hexagon Composites, accounting for about 1% of the outstanding shares, reinforcing the collaborative ties between both companies.
Hexagon's CEO, Philipp Schramm, expressed enthusiasm regarding the acquisition, highlighting the complementary capabilities that SES Composites brings to Hexagon's existing offerings. He stated, "This acquisition brings complementary capabilities to our portfolio and can realize further synergies across our production and supply chain." The transaction is expected to pave the way for an enriched focus on creating value in both current and emerging segments of the industry.
A Look at Sustainable Energy Solutions (SES)
Founded as a prominent supplier within Europe, SES specializes in high-pressure gas cylinders and systems designed for effective storage and distribution of compressed gases. The company’s operations span across several European nations, with SES Composites manufacturing composite cylinders in Poland while also maintaining a valve assembly facility in Germany. As per their 2024 performance, SES Composites achieved an impressive revenue of EUR 28 million, and projections for 2025 indicate further revenue growth, showcasing its strong market presence.
Hexagon’s acquisition allows SES Composites to operate with enhanced focus, aiming to expedite growth in the commercial transportation sector, particularly emphasizing the importance of natural gas solutions, both renewable and conventional, in Europe's ongoing energy transformation.
Strengthening the European Footprint
The acquisition not only solidifies Hexagon's stance as a trusted partner for European OEMs in the commercial transportation space but also represents a strategic step in expanding its manufacturing capabilities and geographic reach. This move underscores Hexagon's commitment to fostering growth in the clean energy landscape, recognizing the central role that natural gas will play during the broader energy transition.
Additionally, the acquisition provides the opportunity to streamline the operations of SES Composites by focusing on synergies between their production lines and Hexagon’s existing resources. With this merger, Hexagon aims to further enhance its service offerings and establish a more dominant position in the growing market for alternative fuels.
Future Outlook
As Hexagon Composites continues to innovate and expand, this acquisition of SES Composites is poised to serve as a testament to the company’s dedication to providing safe and innovative solutions for clean energy. The transition is set to be finalized by the conclusion of Q3 2025, following customary completion accounts adjustments, illustrating a steady and calculated approach to ensuring both entities can benefit from the merger's opportunities.
Overall, the successful integration of SES Composites stands to benefit both Hexagon and the wider European market, aligning with the increasing demand for sustainable energy solutions. As the company looks forward to its enhanced capabilities, stakeholders remain optimistic about the effective strategies to further advance Hexagon's impact in the realm of clean energy solutions.
For further inquiries regarding this transaction or more insights about Hexagon Composites, stakeholders can reach out to their senior communications team or investor relations departments for detailed information.