Hexagon Purus ASA, a world leading manufacturer of zero-emission mobility and infrastructure solutions, has through one of its wholly owned subsidiaries entered into an agreement to divest its aerospace business to Space Exploration Technologies Corp. (#SpaceX). The transaction comprises the sale of 100% of the shares of Hexagon Masterworks Inc. (“Masterworks”), which supplies high-pressure #compositestoragecylinders for #aerospace and #spacelaunch applications in North America, and for hydrogen mobility applications. The hydrogen business is not part of the transaction perimeter, and Masterworks’ existing hydrogen customer contracts are intended to be transferred to other parts of Hexagon Purus prior to closing.
The transaction implies an enterprise value of approximately USD 15.0 million, comprising
(i) a cash consideration of USD 12.5 million payable at closing, and
(ii) a contingent cash earn-out of USD 2.5 million, subject to applicable closing conditions and customary adjustments. A requisite number of bonds under the Company’s 2023 and 2024 bond agreements have undertaken to approve closing of the transaction.
The aerospace business has developed well in recent years and has now reached a stage where an industrial owner with a dedicated aerospace focus is deemed to best support its future. At the same time, the Company does not expect the hydrogen mobility market in North America to represent significant potential in the near-to-medium term. The divestment is therefore aligned with the Company’s ongoing portfolio review – the transaction will strengthen the Company’s financial position and extends the liquidity runway.
“I am pleased that we have found a new home for Masterworks with an owner that views our composite cylinder expertise as world-class and intends to integrate the business into its supply chain to support its long-term growth”, says Morten Holum, CEO of #HexagonPurus. “I want to sincerely thank the #Masterworks team for their dedication and hard work in developing the business to this point. While it is never easy to part with a business that has performed well, this transaction strengthens Hexagon Purus’ financial position and allows us to focus on our core strategic priorities.
source : HexagonPurus
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