Hexagon Purus acquires high-pressure gas storage systems company Wystrach

Hexagon Purus ASA (Alesund, Norway), a global zero-emission mobility solutions company and manufacturer of Type IV composite pressure vessels, has entered into an agreement to acquire 100% of Wystrach GmbH (Weeze, Germany), a 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.

When asked by CW how this acquisition reflects on Hexagon’s long-time insistence and preference for Type IV tanks for hydrogen mobility applications, the company noted that Wystrach’s inclusion enables the expansion of Hexagon Purus’ portfolio to systems solutions beyond mobility, and therefore will incorporate/source other cylinder types into these solutions as needed.

Wystrach itself has more than 30 years experience in high-pressure gas storage systems — including for hydrogen — and specializes in their design, manufacture and assembly, from steel system structures to high-pressure piping. The company has also been a long-standing customer and partner of Hexagon Purus since 2008, delivering high-performance hydrogen storage solutions to the market for use in applications ranging from transportation to stationary storage and refueling solutions. Wystratch has recorded revenues of €24.1 million and EBITDA of €2.1 million in FY 2020.

For the transaction, purchase price was up to €43.3 million, based on an enterprise value of €50 million. The transaction is expected to close Q4 2021, subject to fulfillment of certain closing conditions and customary regulatory approvals.

“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,” says Morten Holum, CEO of Hexagon Purus. “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. 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.”

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

Further, hydrogen continues to build momentum globally as a key contributor to the energy transition. More than 30 countries have released hydrogen roadmaps; more than $70 billion 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 (see “Hydrogen is poised to fuel composites growth, Part 1”).

“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,” concludes Wolfgang Wolter, Co-CEO of Wystrach.