Agility Fuel Systems and Division of Hexagon Composites to Merge

Norwegian manufacturer Hexagon Composites and Agility Fuel Systems announced plans to merge Hexagon's compressed natural gas automotive products division with Agility to form a new company, Agility Fuel Solutions.

Agility Fuel Solutions - which will continue to serve the global medium- and heavy-duty vehicle industry with clean fuel technologies - will be owned equally by Hexagon Composites and Agility's current investors, the companies said.

Financial terms of the proposed merger, which would expand an earlier joint venture between them, were not disclosed. The transaction is expected to close in the third quarter of 2016, they said.

The Hexagon division includes medium- and heavy-duty vehicle composite cylinder manufacturing operations and its bus systems business unit, the companies said.

“This merger combines two market leaders with strong backgrounds in engineering creativity, profitable growth and operational excellence,” Kathleen Ligocki, CEO of the new company, said in a statement.

She was most recently CEO of Agility Fuel Systems, based in Santa Ana, California.

The combined company will have production sites in Brazil, Norway and the United States, with technical centers located in Lincoln, Nebraska and Kelowna, British Columbia, the companies said.

Agility Fuel Solutions will manufacture cylinders for use in its systems, as well as for direct sale with offices in the Canada, India, Latin America, Norway, Southeast Asia and the United States, the companies said.

“This transaction is a natural progression of our existing joint venture arrangement and will expand our ability to create unique value for our customers by deepening our technical capabilities and expanding our reach globally,” Sam Gabbita, general partner at Element Partners, the lead investor for Agility Fuel Systems, said in a statement.

In May 2014, Agility and Hexagon Lincoln - division of Hexagon Composites based in Lincoln, Nebraska - formed a joint venture, Agility Hexagon, to build cylinders for use in Agility's systems, Agility said.

Hexagon's mobile pipeline, hydrogen products and light-duty vehicles divisions will continue to operate as Hexagon Composites, the companies said.

“It is always great to see two industry titans teaming up like this. With a long history of working together, we can only assume that this even closer relationship will allow the teams to bring better product to the market, faster, and for even more competitive prices. In the end, the customer will really win with this deal,” Erik Neandross, CEO of the consulting firm Gladstein, Neandross & Associates, told Transport Topics.