Worthington Enterprises Announces Planned Acquisition of Hexagon Ragasco and Sustainable Energy Solutions Joint Venture with Hexagon Composites

COLUMBUS, Ohio, May 29, 2024 (GLOBE NEWSWIRE) -- Worthington Enterprises (NYSE: WOR), a designer and manufacturer of market-leading brands that enable people to live safer, healthier and more expressive lives, today announced the signing of two definitive agreements with Hexagon Composites ASA (OSE: HEX.OL) of Norway. One agreement is to acquire 100 percent of Hexagon Ragasco and a second agreement is to sell 49 percent of Worthington’s Sustainability Energy Solutions (SES) business segment to Hexagon Composites forming a joint venture with the company. The two transactions will extend Worthington’s global position in cylinder manufacturing and strengthen its position to capitalize on the storage, transport and distribution of gases supporting the global clean energy transition including propane (LPG), hydrogen and compressed natural gas. The formation of the joint venture was completed today, and the acquisition of Hexagon Ragasco is expected to close on or around June 3, 2024.

Acquisition of Hexagon Ragasco

Worthington plans to acquire Hexagon Ragasco, a global market leader in lightweight, customizable LPG composite cylinders used for leisure, household and industrial applications, for approximately $98 million, which is subject to customary closing adjustments and a potential earn out based on the financial performance of the business through the remainder of calendar year 2024. Hexagon Ragasco had adjusted calendar year 2023 sales of approximately $64 million and EBITDA of $12.7 million. The business employs approximately 130 people in Norway and sells its products in more than 100 countries.

Hexagon Ragasco manufactures its cylinders in an automated facility in Raufoss, Norway. The company’s innovative and technology-enabled manufacturing capabilities, along with its ability to easily customize cylinders, make Hexagon Ragasco’s cylinders among the most efficiently produced and quality-consistent composite LPG cylinders in the world. The addition of Hexagon Ragasco furthers Worthington’s interests in advancing the use of clean fuels as part of the global energy transition.

Hexagon Ragasco will become part of the Building Products segment at Worthington Enterprises that delivers products and solutions for heating, cooling, construction and water applications worldwide. Worthington Enterprises is one of the world’s leading manufacturers of cylinders for these markets. The planned acquisition also expands the Company’s operational footprint in Europe where its Amtrol-Alfa facility in Portugal makes a wide range of cylinders.