Luxfer Announces the Strategic Acquisition of Structural Composites Industries (SCI)
15 March 2021
Luxfer today announced it has acquired the Structural Composites Industries (“SCI”) business of Worthington Industries, Inc. (NYSE: WOR) for $20 million in cash.
MANCHESTER, UK (BUSINESS WIRE) – March 15, 2021 — Luxfer Holdings PLC (NYSE:LXFR), a global manufacturer of highly-engineered materials, today announced it has acquired the Structural Composites Industries (“SCI”) business of Worthington Industries, Inc. (NYSE: WOR) for $20 million in cash.
SCI strengthens Luxfer’s composite cylinder offering and aligns with recent investments to enhance its alternative fuel capabilities to capitalize on the growing compressed natural gas (CNG) and Hydrogen opportunities. The SCI team will join the Luxfer Gas Cylinder’s team located in Riverside, CA, and complements Luxfer’s additional locations in Nottingham, UK, Calgary, Canada and Shanghai, China. SCI will become an integral part of Luxfer’s Gas Cylinders and all SCI products will transition to the Luxfer brand name.
“We welcome the SCI employees to the Luxfer team. The addition of SCI significantly enhances our product offering and fortifies our capabilities in alternative fuels and aerospace applications. The newly combined business will result in higher levels of innovation, expanded manufacturing capacity and enhanced service offerings to our customers worldwide.,” said Alok Maskara, Luxfer Chief Executive Officer. “With the recently announced intent to divest the majority of our Aluminum operations and today’s announcement, we are continuing to actively reshape our portfolio and opening new avenues of growth.”
Compelling Strategic and Financial Benefits
- Expands capabilities within higher growth alternative fuel markets. The acquisition expands Luxfer’s capabilities in alternative fuels and creates capacity for faster growth in CNG and Hydrogen. The SCI technology includes solutions for storing and transporting hydrogen, a strategic focus area for Luxfer.
- Broadens portfolio and creates market expansion opportunities to better serve our customers. The acquisition strengthens Luxfer’s composite cylinder capabilities by broadening its portfolio of lightweight, high-pressure gas cylinders and systems in several key markets including alternative fuels, life support, aerospace and defense.
- Adds global customer relationships and strong innovation capability. The acquisition will enhance Luxfer’s key account management program by expanding the relationship at some large customers while providing complementary technology and resources to accelerate research and new product development.
- Expected to be accretive to Adjusted EPS in 2022 with significant cost and revenue synergies. SCI will be part of Luxfer Gas Cylinders business unit headquartered with its largest manufacturing facility in Riverside, California, about 25 miles from SCI’s Pomona operations. Luxfer expects to generate significant cost synergies and growth opportunities within the first three years.
“The Luxfer Gas Cylinders brand and product offering is synonymous with quality, reliability and innovation, and the acquisition of SCI will further strengthen our reputation,” stated Andy Butcher, President of Luxfer Gas Cylinders. “We look forward to providing our customers with an expanded portfolio of innovative solutions, technical expertise and the highest levels of service and support that they have come to expect from Luxfer, the world’s leading provider of high-pressure carbon composite cylinders.”
Luxfer is a global manufacturer of highly-engineered industrial materials, which focuses on value creation by using its broad array of technical knowhow and proprietary technologies. Luxfer’s high-performance materials, components and high-pressure gas containment devices are used in defense and emergency response, healthcare, transportation and general industrial applications. For more information, visit www.luxfer.com.
About Luxfer Gas Cylinders
Luxfer Gas Cylinders is the world’s largest manufacturer of light weight, high-pressure gas cylinders. With more than 70 million Luxfer cylinders in service around the world, Luxfer Gas Cylinders has an exemplary record for dependability and safety. Luxfer cylinders are used in a variety of applications, including firefighter and first-responder life support, medical, fire extinguishers, alternative fuel, specialty gas, beverage, aerospace, inflation and SCUBA. An operating company of Luxfer Holdings PLC), Luxfer Gas Cylinders is based in Riverside, California and has manufacturing facilities in the U.S., England, Canada, and China. For more information, visit www.luxfercylinders.com.
About Structural Composites Industries
Structural Composites was founded in 1971 as a spin off from Aerojet and became one of the world's first producers of DOT approved composite cylinders for commercial, military, and aerospace applications. Today, the business employees over 130 people in its Pomona, CA location, and supplies customers with high pressure cylinders around the world, for applications including Alternative Fuels (for hydrogen and compressed natural gas storage and transportation) and Life Support (for firefighters breathing apparatus, emergency escape equipment, and medical oxygen).
Press and Investor Contacts
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