AI assistant
Hexagon Composites — M&A Activity 2022
Apr 21, 2022
3619_rns_2022-04-21_1c378685-f1af-4201-be8a-aa81aebbc14c.html
M&A Activity
Open in viewerOpens in your device viewer
Hexagon to acquire stake in an advanced liquid gas storage technology company, enhancing its portfolio of clean fuel solutions
Hexagon to acquire stake in an advanced liquid gas storage technology company, enhancing its portfolio of clean fuel solutions
April 21, 2022: Hexagon Composites, a world leading designer and manufacturer of
clean fuel solutions for commercial vehicles, signed an agreement to acquire a
40% stake in Cryoshelter GmbH, an Austria based company specialized in the
development of cryogenic tank technology for liquid (renewable) natural gas
(LNG) and liquid hydrogen (LH2).
The Hexagon Group today provides compressed natural gas (CNG), including
renewable natural gas (RNG), compressed hydrogen and battery-electric systems as
part of its portfolio of clean fuel solutions. Liquid storage of renewable
natural gas (LNG) and hydrogen (LH2) will add a new dimension to its existing
offering, complementing its portfolio and unlocking new opportunities for
Hexagon Agility and Hexagon Purus, respectively.
"Cryoshelter has a potentially disruptive technology with competitive edge
compared to existing technology alternatives in the market. Our goal is to aid
the commercialization and industrialization of this technology," says Jon Erik
Engeset, CEO of Hexagon Composites. "The addition of Cryoshelter's technology
extends our product portfolio to include leading liquid gas solutions. This will
further strengthen our efforts to drive decarbonization in the heavy-duty
transport sector, support Europe and other key geographies in securing energy
independence and reinforce our position as a global leader in clean energy
solutions."
"Our people possess extensive education, knowledge and experience in the
engineering and design of cryogenic tanks. We are excited to team up with
Hexagon as they bring industrial expertise, a global presence and customer
potential to escalate the scale up of our operations," says Dr. Matthias
Rebernik, CEO and Founder of Cryoshelter. "Hexagon's investment into our company
is proof of confidence in our technology."
Information on transaction
Hexagon Composites ASA will make an initial investment of EUR 2.5 million to
acquire 40% of Cryoshelter's liquid (renewable) natural gas (LNG) business, with
options to buy remaining interests over the next 3-10 years. Together with
Cryoshelter, Hexagon will further develop the technology and scale up the
business over the coming years.
Hexagon Purus ASA (owned 73.3% by Hexagon Composites) will make an initial
investment of EUR 3.5 million to acquire 40% of Cryoshelter's liquid hydrogen
(LH2) business, with options to buy remaining interests over the next 5-10
years. Together with Cryoshelter, Hexagon Purus will further develop the
technology and business over the coming years. (Reference Hexagon Purus
announcement, April 21, 2022).
The separation of Cryoshelter's liquid (renewable) natural gas and liquid
hydrogen businesses recognizes the different phases of market and product
development. There is an established market for liquid natural gas mobility
solutions and Cryoshelter's technology is already at a pre-commercial stage,
while the market and products for liquid hydrogen storage are in the early stage
of development with longer timeframe to commercialization.
Closing of the Transaction is expected to take place by the third quarter of
2022, subject to fulfilment of certain closing conditions and customary
regulatory approvals.
Decarbonization will require compressed and cryogenic solutions
In contrast with North America, where compressed (renewable) natural gas
(RNG/CNG) is the primary natural gas technology for long-haul trucking, LNG has
emerged as the leading natural gas alternative in Europe due to a significant
infrastructure network, favorable cost position and preferred truck
configuration. Over the last year, the number of new LNG truck registrations and
filling stations have increased significantly, and higher growth is expected
over the next decade as fleet operators are opting for readily available, cost
competitive fuels with immediate emission saving potential such as biomethane
(RNG).
Supported by European legislation, it is expected that renewable natural gas,
alongside battery-electric and fuel cell-electric technologies will play a key
role in the efforts to decarbonize the commercial transportation sector in
Europe.
For more information:
Karen Romer, SVP Communications, Hexagon Composites
Telephone: +47 950 74 950 | [email protected]
(mailto:[email protected])
Ingrid Aarsnes, VP Investor Relations and ESG, Hexagon Composites
Telephone: +47 950 38 364 | [email protected]
(mailto:[email protected])
About Cryoshelter GmbH
Cryoshelter is an advanced liquid natural gas tank technology company founded in
2008 in Austria. The company has developed and secured patented technology for
heavy duty trucks and buses using cryogenic storage solutions for liquid natural
gas and liquid hydrogen gas based on same technology platform. Cryoshelter's
commercialized liquid natural gas tanks allow for maximum utilization of space
to give industry leading performance. The company is headquartered in Graz,
Austria. Learn more at www.cryoshelter.com (http://www.cryoshelter.com)
About Hexagon Composites ASA
Hexagon delivers safe and innovative solutions for a cleaner energy future.
Hexagon's solutions enable storage, transportation and conversion to clean
energy in a wide range of mobility, industrial and consumer applications. Learn
more at www.hexagongroup.com (http://www.hexagongroup.com) and follow
@HexagonASA on Twitter and LinkedIn.