Praxair Inc, the industrial gas producer and supplier had announced earlier that it had acquired the carbon dioxide interests of Tri-State Carbonic LLC. No financial terms of the acquisition were discussed in the announcement.
Tri-State is a renowned bulk carbon dioxide gas provider for industrial purposes. Included in the acquisition is the CO2 plant located at Lawrenceburg, IN as well as the existing portfolio of clients of the company. This would help in better serving Tri-State's client base in the areas of Cincinnati and Louisville.
This is the preferred manner in which Praxair has been expanding into new businesses and markets. Before this purchase, Praxair had completed the acquisition of NuCO2, the beverage carbonator based in California. That purchase was pegged at US$1.1 billion cash and included in the purchase are NuCO2 assets that would help enable Praxair to become competitive in the fizz beverage business.
Praxair is poised to achieve its annual sales growth targets between 8% to 12% by 2015. It also has a policy of returning value to shareholders through dividends and share buybacks.
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