Praxair has entered into an agreement to acquire NuCO2, a provider of beverage carbonation products and a portfolio company of Aurora Capital Group, for $1.1 billion in cash. The transaction is expected to close by the end of the first quarter of 2013.
NuCO2 is a national provider of beverage carbonation services to the restaurant and hospitality industries with 162,000 customer locations and 900 employees. The business is expected to generate full year sales in 2013 of about $250 million and EBITDA of about $115 million. The company is based in Stuart, FL (www.nuco2.com).
“NuCO2 offers a compelling value proposition for beverage carbonation,” said Eduardo Menezes, executive vice president of Praxair. “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.”
Aurora Capital focuses principally on control-investments in middle-market industrial, manufacturing and service oriented businesses. The firm has $2 billion of capital under management and is located in Los Angeles (www.auroracap.com).
Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2012 sales of $11 billion. The company produces, sells and distributes atmospheric and process gases, and high-performance surface coatings. Industries served include aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, metals and others. The company is headquartered in Danbury, CT (www.praxair.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 2-5-13