Worthington Enterprises acquires Hexagon Ragasco, enters joint venture with Hexagon Composites

June 4, 2024 By    
Image: Worthington Enterprises

The Hexagon manufacturing process. (Photo courtesy of Worthington Enterprises)

Worthington Enterprises signed two agreements with Hexagon Composites in Norway. Worthington sold 49 percent of its Sustainability Energy Solutions (SES) business segment to Hexagon Composites, forming a joint venture, and acquired 100 percent of Hexagon Ragasco.

The agreements will strengthen Worthington’s global position in cylinder manufacturing, according to the company.

Worthington Enterprises, previously Worthington Industries, was founded June 3, 1955 by John H. McConnell.

“It is fitting that we completed this acquisition on Worthington’s Founder’s Day,” says Andy Rose, president and CEO of Worthington. “John H. McConnell’s legacy lives on in our daily operations in many ways but none more visible than the philosophy he wrote that guides the business. Treating people as they would like to be treated continues as our Golden Rule in our interactions with employees, customers, suppliers and our local communities. Our philosophy will lead the way as we integrate Hexagon Ragasco into our company.”

Acquisition of Hexagon Ragasco

Photo: Worthington Enterprises, Inc.

Photo courtesy of Worthington Enterprises

Hexagon Ragasco services more than 100 countries with customizable LPG composite cylinders used for leisure, household and industrial applications. The company was acquired by Worthington for $98 million and is subject to customary closing adjustments. There is also a potential earn-out based on the financial performance of the business through 2024. In 2023, Hexagon Ragasco made adjusted calendar year sales of about $64 million and EBITDA of $12.7 million.

Through this acquisition, Worthington furthers its interest in clean fuel advancement as part of the global energy transition, the company says. Hexagon Ragasco will become part of Worthington’s building products segment, which delivers products and solutions for heating, cooling, construction and water applications worldwide. The acquisition also expands Worthington’s operations throughout Europe where its Amtrol-Alfa facility in Portugal makes a wide range of cylinders.

“Hexagon Ragasco is one of the pioneers of the composite cylinder,” says Jimmy Bowes, president of building products at Worthington. “They’ve been bringing innovative products to the market for more than 20 years 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.”

Joint Venture with Hexagon Composite

Hexagon Composite acquired 49 percent of Worthington’s SES business segment for $10 million. Worthington will maintain 49 percent ownership. The remaining 2 percent is held by the existing executive management team. In its Austria, Germany and Poland facilities, the SES business segment has more than 500 employees.

“The creation of a joint venture with Hexagon is an opportunity to bring in an experienced partner and work together to develop the next phase of the SES business in an evolving marketplace,” Rose says. “Their investment reflects the strength of our reputation, achievements to date and the potential of the business. We are grateful to our SES team for their dedication, and we look forward to continuing to support their efforts.”

Prior to partnering with Hexagon, Worthington historically has used joint ventures to grow the company and maximize success. In 2011, ClarkDietrich was formed to offer products and services for cold-formed steel framing and drywall/plastering finishing systems. The company also participates in the Worthington Armstrong Venture, formed in 1992, which provides ceiling solutions for commercial and residential locations.

Worthington Enterprises is a designer and manufacturer of building products, consumer products and sustainable energy solutions. It is positioned to capitalize on trends in sustainability, technology, remodeling and construction, and outdoor living, according to the company. Late last year, the company completed the separation of its steel processing business, Worthington Steel Inc., into a standalone, publicly traded company. Its common stock continues to trade on the New York Stock Exchange (NYSE) under the ticker symbol “WOR.” Headquartered in Columbus, Ohio, the company has about 5,000 employees throughout North America and Europe.

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