Praxair to Acquire NuCO2 INC.
DANBURY, Conn. -- February 5, 2013
Praxair, Inc. (NYSE: PX), announced it has entered into an agreement to
acquire NuCO INC. from Aurora Capital Group, a Los Angeles, California
based private equity firm, for $1.1 billion in cash. The transaction is
subject to customary conditions to closing, including regulatory approval, and
is expected to close by the end of the first quarter of 2013.
NuCO is the leading national provider of beverage carbonation solutions in
the United States 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 acquisition is expected to be neutral to slightly accretive to
Praxair’s 2013 earnings per share.
The NuCO micro-bulk beverage carbonation solution is the service model of
choice for quick service restaurants and convenience stores offering fountain
beverages. The micro-bulk solution is more cost effective than conventional
high pressure cylinders, more reliable, and less labor intensive for the
customer. Additionally, NuCO 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
“NuCO 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 NuCO’s offerings
to customers in other regions of the world,” added Menezes.
A teleconference on the acquisition will be held today, Tuesday, February 5,
2013 at 12:00 p.m. ET. The number is 617-614-3523 -- Passcode: 72721447. The
call is also available as a web cast at www.praxair.com/investors. Materials
to be used in the teleconference are also available. Web and telephone replay
will be available beginning at 2:00 p.m. ET on Tuesday, February 5, 2013. The
telephone replay dial-in number is 617-801-6888 -- Passcode: 67371231.
Praxair, Inc. 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. Praxair products, services and technologies
are making our planet more productive by bringing productivity and
environmental benefits to a wide variety of industries including aerospace,
chemicals, food and beverage, electronics, energy, healthcare, manufacturing,
metals and others. More information on Praxair is available on the Internet at
About Aurora Capital Group
Aurora Capital Group is a Los Angeles-based private investment firm managing
over $2 billion of capital across several funds. Aurora's traditional private
equity vehicle focuses principally on control investments in middle market
businesses with leading market positions, strong cash flow profiles, and
actionable opportunities for growth in partnership with operating management.
Aurora's Resurgence fund invests in debt and equity securities of middle
market companies and targets complex opportunities that are created by
operational or financial challenges.
This document contains “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements are based
on management’s reasonable expectations and assumptions as of the date the
statements are made but involve risks and uncertainties. These risks and
uncertainties include, without limitation: the performance of stock markets
generally; developments in worldwide and national economies and other
international events and circumstances; changes in foreign currencies and in
interest rates; the cost and availability of electric power, natural gas and
other raw materials; the ability to achieve price increases to offset cost
increases; catastrophic events including natural disasters, epidemics and acts
of war and terrorism; the ability to attract, hire, and retain qualified
personnel; the impact of changes in financial accounting standards; the impact
of changes in pension plan liabilities; the impact of tax, environmental,
healthcare and other legislation and government regulation in jurisdictions in
which the company operates; the cost and outcomes of investigations,
litigation and regulatory proceedings; continued timely development and market
acceptance of new products and applications; the impact of competitive
products and pricing; future financial and operating performance of major
customers and industries served; the impact of information technology system
failures, network disruptions and breaches in data security; and the
effectiveness and speed of integrating new acquisitions into the business.
These risks and uncertainties may cause actual future results or circumstances
to differ materially from the projections or estimates contained in the
forward-looking statements. Additionally, financial projections or estimates
exclude the impact of special items which the company believes are not
indicative of ongoing business performance. The company assumes no obligation
to update or provide revisions to any forward-looking statement in response to
changing circumstances. The above listed risks and uncertainties are further
described in Item 1A (Risk Factors) in the company’s Form 10-K and 10-Q
reports filed with the SEC which should be reviewed carefully. Please consider
the company’s forward-looking statements in light of those risks.
Sue Neumann, 203-837-2609
Kelcey Hoyt, 203-837-2118
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