Danbury industrial-gas supplier Praxair Inc. says it will buy soda and beer carbonation company NuCO2 Inc. for $1.1 billion in cash, helping it expand into the restaurant business, The Associated Press reports.
Praxair provides gases for industrial companies. Based in Stuart, Fla., NuCO2 supplies the carbonation used at soda dispensers in gas stations and fast-food restaurants.
Praxair says NuCO2 helps fizz beverages at 162,000 locations and is expected to have revenue of $250 million this year. Praxair wants to increase NuCO2 business in the U.S. and extend it into other parts of the world.
The deal with Aurora Capital Group, the Los Angeles private equity firm that owns NuCO2, is expected to close by the end of the first quarter. If it goes through, the acquisition is expected to be neutral or add slightly to Praxair’s profit this year.
