Hexagon Composites and Agility Fuel Systems announced the merger of Hexagon Composites’ CNG Automotive Products Division, which includes medium- and heavy-duty vehicle composite cylinder manufacturing operations and its bus systems business unit, with Agility to form Agility Fuel Solutions. The companies explained that the strategic integration of fuel systems and cylinders will provide value by reducing up-front costs for clean technology, accelerating commercialization of new product ideas and driving faster returns on investments
“This merger combines two market leaders with strong backgrounds in engineering creativity, profitable growth and operational excellence,” said Kathleen Ligocki, who was named chief executive officer of the newly merged company. “Agility is proud of our successful relationship with Hexagon, and together we will target driving adoption of clean natural gas systems in commercial vehicle markets around the world.”
The new entity will be owned equally by Hexagon Composites and Agility’s current investors. The combined company will have production sites in the US, Norway, and Brazil, with technical centers located in Lincoln, Nebraska and Kelowna, British Columbia. Agility Fuel Solutions will manufacture cylinders for use in its systems, as well as for direct sale with offices in the US, Canada, Latin America, Norway, India, and Southeast Asia.
The transaction is expected to close in the 3rd quarter of 2016. Hexagon’s Mobile Pipeline, Hydrogen Products and Light-Duty Vehicles divisions will continue to operate as Hexagon Composites.