Hexagon Purus acquires Wystrach GmbH for EUR43.3mn

Hexagon Purus acquires Wystrach GmbH for EUR43.3mn

OSLO, NORWAY: Hexagon Purus ASA has entered into an agreement to acquire 100% of Wystrach GmbH, a leading European systems and solutions provider for storage and transport of compressed gases.

The combination brings unprecedented expertise and capacity together to create the vertically integrated industry leader in hydrogen storage solutions.

Purchase price of up to EUR 43.3 million is based on an enterprise value of EUR 50 million. 35% of the purchase price is to be paid in cash at closing, 35% of the purchase price is to be paid in the form of consideration shares in Hexagon Purus at closing at a price per share of NOK 33.4/share; 30% of the purchase price represents a deferred payment and a contingent earn-out, both payable in cash.

The transaction represents a step-change for Hexagon Purus and reinforces its position as a global leader in zero emission mobility solutions. Wystrach will bring significant systems assembly capacity and knowhow and complement the capabilities of Hexagon Purus, improving control of the value chain and accelerating time to market.

Combining two industry frontrunners will increase scale, organizational bandwidth and execution capabilities and put Hexagon Purus in pole position to capitalize on the strong market growth expected for hydrogen storage solutions.

Hexagon Purus and Wystrach have been partners since 2008, delivering high performance hydrogen storage solutions to the market for use in applications ranging from transportation to stationary storage and refueling solutions.

Strengthening its foothold in systems manufacturing and assembly has been a key pillar in Hexagon Purus’ strategic roadmap and acquiring a long-term partner and established market leader will fast-track the growth plan and sharpen Hexagon Purus’ competitive edge.

“In Hexagon Purus, we believe that progress can’t wait. Together with Wystrach, we share the ambition to lead the industry and contribute to a vision of Clean Air Everywhere. By combining forces, we will have the scale and position to accelerate the transition to hydrogen and in doing so, deliver significant value to customers, shareholders and society going forward,” said Morten Holum, CEO of Hexagon Purus.

“The addition of Wystrach supports and accelerates our growth plans in three key respects. It brings highly complementary capabilities, it expands our product portfolio and it adds significant capacity needed to meet industry demand.”

“Today’s market is highly dynamic. It demands strong alliances and brings up new constellations. We have a long history of working with Hexagon Purus and a common understanding of the market and its opportunities. Together we make climate-friendly hydrogen applications a part of everyday life. Hexagon Purus is the right industrial owner to further strengthen Wystrach and the legacy we have built from the ground up,” said Wolfgang Wolter, Co-CEO of Wystrach.

“This combination is a great fit from both a cultural perspective and from a segment expertise and customer perspective. It strengthens our offering and gives us the capacity and additional expertise to support customers in their transition to sustainable energy,” said Michael Kleschinski, EVP Hexagon Purus.

“I have great respect for what the team at Wystrach has accomplished under the leadership of Wolfgang Wolter and Jochen Wystrach. I look forward to combining our employees’ skills and industry expertise to become THE provider of turn-key hydrogen solutions in the industry.”

The global market for hydrogen cylinders and storage systems is expected to grow to USD 7 billion by 2030 and systems design, assembly and metalworking capability are key to addressing this opportunity.

Hydrogen continues to build momentum globally as a key contributor to the energy transition. Over 30 countries have released hydrogen roadmaps; more than USD 70bn in government funding is committed to hydrogen investments; 359 large-scale hydrogen projects have been announced by the industry to date, and green hydrogen is projected to supply up to 25% of the world’s energy needs by 2050.

Hexagon Purus ASA share price

2.82 EUR−0.020 (0.70%)today

29 Sep, 8:00 pm GMT+2 ·Disclaimer

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