(By Balachander) Praxair Inc. (NYSE: PX), which supplies industrial gases, has agreed to acquire NuCO2 INC., a provider of beverage carbonation services, for $1.1 billion in cash.
Danbury, Connecticut-based Praxair expects the acquisition from Aurora Capital Group, a Los Angeles, California based private equity firm, to be neutral to slightly accretive to its earnings this year.
In addition, the company expects NuCO2 to generate EBITDA of about $115 million and sales of around $250 million for 2013. Praxair generated sales of $11 billion in 2012.
"NuCO2 offers a compelling value proposition for beverage carbonation," said Eduardo Menezes, executive vice president of Praxair.
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According to Praxair, the NuCO2 micro-bulk beverage carbonation solution is the service model of choice for quick service restaurants and convenience stores offering fountain beverages. NuCO2 is expanding its product offering for establishments with draught and craft beers to include nitrogen generators and blending control systems which improve draught beer consistency and reduce waste.
The deal is expected to be completed by the end of the first quarter of 2013.
PX shares ended Monday's regular trading at $110.18.