Hexatronic signs an agreement to acquire Fibron from Rubicon Partners and strengthens its position in Harsh Environments
Hexatronic Group AB (publ) (“Hexatronic”) has signed an agreement to acquire Fibron BX, LTD (“Fibron”), a leading original equipment manufacturer within harsh environment electro-optical cables from Rubicon Partners. By acquiring Fibron, Hexatronic will strengthen its position as a comprehensive provider of high-quality umbilical products and specialty underwater cables. Fibron's diverse portfolio delivers across sectors such as traditional energy markets including renewables (wave, tidal & wind), ROV, defense, and diving and their extensive global customer base complements Hexatronic's existing portfolio. The estimated enterprise value amounts to GBP 32 million.
Strategic rationale
This strategic acquisition allows for additional diversification of Hexatronic’s business and increased opportunities within Harsh Environment markets. Following the completion of the acquisition, Hexatronic’s Harsh Environment business will increase from approximately 7 percent of annual group sales to over 11 percent, on a proforma basis. Hexatronic sees promising opportunities for further growth in the harsh environment sector, both through organic expansion and future acquisitions.
The agreement presents numerous synergies with Hexatronic Rochester Cable, the Hexatronic subsidiary within Harsh Environments, including complementary production capabilities, improved utilization, expanded tender bidding ability, and enhanced economies of scale. Additionally, Fibron's expertise in custom umbilical cables, along with their proficiency in global project sales, adds significant value to Hexatronic's capabilities.
Comments from Hexatronic CEO
“The acquisition of Fibron marks a significant milestone for Hexatronic as we expand our portfolio and strengthen our operations in Harsh Environments. Fibron's expertise and reputation as a leading manufacturer of subsea control umbilicals align with our strategic growth objectives. Together, we will combine our strengths and capabilities to provide enhanced solutions and value to our customers. We look forward to welcoming the Fibron team into the Hexatronic Group and embarking on this exciting journey of growth and innovation”, says Henrik Larsson Lyon, CEO of Hexatronic Group.
Comments from Fibron CEO
"Fibron’s business provides products globally into the harshest of underwater environments, becoming part of Hexatronic group represents stability for our growing business as we continue to deliver for our customers and employees. We are excited about the opportunity of working closely with Hexatronic Rochester Cable, together we are globally complementary and will be able to offer a wider product portfolio to our existing customer base”, says Phil Ashley, CEO of Fibron.
The existing Fibron management team will remain in their current roles.
The transaction is subject to customary closing conditions and regulatory approval under the National Security and Investment Act. The deal is expected to be completed in the latter part of the third quarter 2023.
For more information, please contact:
Henrik Larsson Lyon, CEO Hexatronic Group, +46 706 50 34 00
Pernilla Lindén, CFO Hexatronic Group, +46 708 77 58 32
The information was submitted for publication, through the agency of the contact person set out above, at 12:00 CEST on 28 June 2023. This is a translation of the Swedish version of the press release. When in doubt, the Swedish wording prevails.
