#Norway #Oslo #Hexagon Composites #Worthington Enterprises #SES Composites

Hexagon Composites Expands Its Business Footprint with SES Acquisition

In a strategic move to bolster its influence in the alternative fuels market, Hexagon Composites ASA, a leading supplier of composite solutions, has announced the full acquisition of the Sustainable Energy Solutions (SES) alternative fuels business from Worthington Enterprises. This transaction, originally hinted at in a stock exchange release dated May 29, 2024, marks a pivotal moment for Hexagon, which aims to further enhance its European footprint and operational synergies.

According to Philipp Schramm, CEO of Hexagon Composites, welcoming SES Composites into their portfolio opens opportunities for growth and efficiency. The deal will allow Hexagon to leverage SES's manufacturing capabilities, which include high-pressure cylinder systems for compressed gases, particularly focusing on the growing demand for compressed natural gas (CNG) solutions in the commercial transportation sector.

SES Composites: A Leading Player in Alternative Fuels

SES Composites operates from Słupsk, Poland, where it produces advanced composite cylinders and systems. Furthermore, the company maintains a valve assembly facility in Burscheid, Germany, positioning it as a significant player in the European market. In 2024, SES Composites generated an impressive revenue of EUR 28 million and a pro forma EBITDA of EUR 700,000. This acquisition is expected to enhance revenue to EUR 33 million for 2025, driven by a robust backlog of orders and a positive business outlook.

The acquisition will allow Hexagon to focus on value creation and drive efficiencies not only in SES Composites but also in its overall industrial gas business. Hexagon plans to maintain joint ownership of SES’s steel cylinder production in Kienberg, Austria, allowing for a more concentrated approach to the industrial gas market while steering SES Composites towards rapid growth in the alternative fuel sector.

Transaction Details

The acquisition was completed with an Enterprise Value (EV) of EUR 11.7 million. The net purchase price was set at EUR 6.1 million, structured partially through Hexagon Composites and Hexagon Purus shares. Worthington Enterprises will receive over 2 million shares in Hexagon Composites alongside nearly 20 million shares in Hexagon Purus, solidifying its stake while enabling Hexagon to retain a strategic ownership interest in both companies.

Looking Ahead

Hexagon aims to position itself as a key supplier to original equipment manufacturers (OEMs) in the European transit bus market, highlighting the necessity of CNG as a viable energy source for the ongoing energy transition. The company cites an increasing need for safe and innovative technology solutions in the quest for cleaner energy, reaffirming its commitment to sustainability and alternative fuels.

Conclusion

The acquisition of SES Composites by Hexagon represents a significant step forward in their strategy to enhance operational capabilities and expand market reach. As the demand for alternative fuel solutions continues to increase, this merger not only strengthens Hexagon's standing in the European market but also reflects the urgent need for sustainable energy solutions in various industries. With a focus on innovation and strategic partnerships, Hexagon Composites is poised for remarkable growth in the years to come.