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Hexagon Composites announces sale of Hexagon Ragasco to Worthington Enterprises and acquisition of 49% of Worthington Enterprises’ Sustainable Energy Solutions business segment

Hexagon Composites announces the signing of two definitive agreements with Worthington Enterprises: the sale of Hexagon Ragasco on the one hand and the acquisition of a non-controlling stake in Worthington’s SES business segment on the other hand.

Hexagon Composites announces sale of Hexagon Ragasco to Worthington Enterprises and acquisition of 49% of Worthington Enterprises’ Sustainable Energy Solutions business segment
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Hexagon Composites announces the signing of two definitive agreements with Worthington Enterprises: the sale of Hexagon Ragasco on the one hand and the acquisition of a non-controlling stake in Worthington’s SES business segment on the other hand.

Sale of Hexagon Ragasco

Worthington Enterprises will acquire 100% of Hexagon Ragasco at an enterprise value of NOK 1,050 million. Depending on the full year 2024 performance of Hexagon Ragasco, the value may be adjusted between minus NOK 50 million to plus NOK 100 million.

Hexagon Ragasco is the market leader in LPG composite cylinders used for leisure, household, and industrial applications with production in Norway and sales to more than 100 countries worldwide. Worthington Enterprises, through its Building Products business segment, delivers products and solutions for heating, cooling and construction applications worldwide and is a global leader in cylinders for LPG and refrigerant gases.

Hexagon Ragasco has been an important part of the Hexagon Group’ for over 20 years, and we take great pride in the position the company has developed to date. Worthington Enterprises is a highly respected player in our industry. This transaction will enable Hexagon Ragasco to grow in new geographies and verticals,” says Jon Erik Engeset, CEO Hexagon Composites.

Hexagon Ragasco is one of the pioneers of the composite cylinder,” said Jimmy Bowes, president, Building Products, Worthington Enterprises. “Now for more than 20 years, they’ve been bringing innovative products to the market that are raising expectations of the performance, quality and capabilities of an LPG cylinder. We’ve followed their growth closely and believe that their composite cylinders are a great complement to our existing cylinder business. We can’t wait to get started with the exceptional team at Hexagon Ragasco.

The sale of Hexagon Ragasco is expected to close on or around 3 June. Today’s announcement concludes the strategic review initiated by Hexagon in September 2023.

Acquisition of a non-controlling stake in Worthington’s SES business segment

Combined with the sale of Hexagon Ragasco, Hexagon Composites has signed an agreement to acquire a 49% stake in Worthington’s Sustainable Energy Solutions (SES) business segment for an enterprise value of USD 20 million on a 100% basis. SES is a leading European supplier of high-pressure cylinders and systems for storage and distribution of compressed natural gas, hydrogen and industrial gases, and generated revenues of EUR 127 million and adjusted EBITDA of EUR 2.9 million in calendar year 2023. Worthington will retain 49% of the shares, while senior executives will hold the balance.

Through our dialogue with Worthington on the sale of Hexagon Ragasco, we identified an opportunity for Hexagon within Worthington’s Sustainable Energy Solutions (SES) business. Together, these transactions support Hexagon’s strategic focus on high pressure, clean energy solutions,” says Engeset.

The acquisition of a 49% stake in SES closed today.

DNB Markets and Danske Bank acted as financial advisors, and Schjødt and Saxinger Rechtanwalts acted as legal advisors, to Hexagon Composites on the transactions.

More information https://hexagonragasco.com