Hexagon Composites sells LPG cylinder business to Worthington Enterprises

Hexagon Composites ASA is selling liquid petroleum gas (LPG) composite cylinder manufacturer Hexagon Ragasco to Worthington Enterprises for an enterprise value of NOK1,050 million.

Image copyright © everythingpossible - Adobe Stock.

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 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,” said Jon Erik Engeset, CEO of 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 2024.

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 US$20 million on a 100% basis. SES is a European supplier of high-pressure cylinders and systems for storage and distribution of compressed natural gas, hydrogen and industrial gases, and generated revenues of €127 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” said Engeset.