Luxfer Holdings PLC (Luxfer Group) has entered into an agreement to acquire Dynetek Industries Ltd, as the company aims to maximize its presence in the alternative fuel systems market.
Specialty Gas Report understands that alternative fuel systems and transport modules is a strong growth sector for the gas containment industry.
The combination of Luxfer Group’s high-pressure gas cylinder expertise and Dynetek’s position in CNG cylinders and alternative fuel (AF) systems would give the company a healthy platform in the AF systems market.
Luxfer has entered into an a arrangement agreement to acquire all of the issued and outstanding common shares of Dynetek and the Dynetek board of directors, led by executive chairman Douglas Pigot, has unanimously recommended that the company’s shareholders approve the transaction.
Brian Purves, CEO of Luxfer Group, explained the thinking behind the agreement, “The area of alternative fuel systems and transportation modules is one of the strongest growing sectors of the gas containment industry, and the acquisition of Dynetek’s intellectual property, strong brand in this area and manufacturing capacity, coupled with Luxfer’s expertise in large-scale production techniques and global distribution, will help Luxfer Group to maximize its presence in, and improve the economics of, this growing market.”
Dynetek has a leading position in CNG cylinders and AF systems for buses and heavy-goods vehicles, and is a global authority on portable hydrogen containment. The company operates manufacturing facilities in Canada and Germany, with 2011 sales revenue of C$26 million.
Luxfer Group, meanwhile, is a manufacturer of high-pressure gas cylinders through its Luxfer Gas Cylinders division. Six manufacturing plants in the US, UK, France, China and a joint venture in India produce cylinders for a diverse range of applications, including containment of CNG.