Praxair to acquire beverage carbonation provider NuCO2 for $1.1bn
Industrial gas supplier Praxair is set to acquire beverage carbonation solutions provider NuCO2 from California-based private equity firm Aurora Capital Group for $1.1bn.
NuCO2, with 162,000 customer locations and 900 employees, serves fountain beverages to quick service restaurants and convenience stores in the US.
The company claims that its micro-bulk beverage carbonation solution is cost effective compared to conventional high pressure cylinders.
NuCO2 is also expanding its product offering with nitrogen generators and blending control systems to improve draught beer consistency and reduce waste.
Praxair executive vice president Eduardo Menezes said: "NuCO2 offers a compelling value proposition for beverage carbonation. We plan to continue to grow the business in the United States, enhance distribution efficiency utilizing Praxair's competencies in logistics, and extend NuCO2's offerings to customers in other regions of the world."
The business is expected to generate full year sales of around $250m and earnings before interest, taxes, depreciation, and amortization of $115m in 2013.
The transaction is expected to close by the end of the first quarter of 2013.