NuCO2 Inc., a Stuart, Fla.-based provider of bulk CO2 products and services to the fountain beverage industry, has acquired the bulk CO2 beverage carbonation business of Franklin, Tenn.-based nextAir. No financial terms were disclosed, except that NuCO2 expects the deal to add approximately $13 million in annual revenue. Aurora Capital Group took NoCO2 private last May for approximately $487 million.U.S.
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PRESS RELEASE
NuCO 2, the largest supplier in the U.S. of bulk CO 2 systems and services for carbonating fountain beverages, today announced that it has acquired the bulk CO 2 beverage carbonation business, including nearly 10,000 bulk CO 2 customer accounts and related assets, from nexAir. Upon completion, NuCO 2 will have a total of approximately 128,000 accounts. NuCO 2 expects the acquisition to add revenues of approximately $13 million annually.
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Based in Memphis, TN, nexAir’s bulk CO 2 beverage carbonation business primarily spans 15 mid-south states and is complementary to NuCO 2’s existing markets. NuCO 2 currently has facilities operating in all of nexAir’s service areas. The majority of nexAir’s employees engaged in its beverage carbonation business are expected to join NuCO 2.
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“The acquisition of nexAir’s bulk CO 2 beverage carbonation business provides NuCO 2 with a sizable addition to our existing bulk CO 2 business and is an excellent fit with our market position and service capabilities in these geographies,” said Michael E. DeDomenico, NuCO 2’s Chairman and CEO. “This business operates with high quality and service standards that are similar to those of NuCO 2. We expect a smooth and seamless integration of the business into NuCO 2’s existing service platform, as well as for all our customers.”
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Terms of the acquisition were not disclosed. NuCO 2 said the acquisition would be financed primarily with additional investment provided by Aurora Capital Group and its affiliates.
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About NuCO2
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NuCO 2 is the leading and only national provider of bulk CO 2 products and services to the U.S. fountain beverage industry. With service locations within reach of virtually all of the fountain beverage users in the Continental U.S., NuCO 2’s experienced professionals comprise the largest network of sales and support specialists in the industry serving national restaurant chains, convenience stores, theme parks and sports and entertainment complexes, among others. NuCO 2 ‘s revenues are largely derived from the installation, maintenance and rental of bulk CO 2 systems and delivery of beverage grade CO 2, which are increasingly replacing high pressure CO 2, until now the traditional method for carbonating fountain beverages. The technology offers consistent quality, greater ease of operation, and heightened efficiency and safety utilizing permanently installed on-site cryogenic storage tanks. NuCO 2 provides systems and services that allow its customers to spend more time serving their customers. Visit NuCO 2’s website at www.nuco2.com.
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About Aurora Capital Group
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On May 28, 2008, affiliates of Aurora Capital Group (“Aurora”) completed the acquisition of NuCO 2. Aurora is a Los Angeles-based private equity firm managing over $2.0 billion that utilizes two distinct investment strategies. Aurora Equity focuses principally on control-investments in middle-market industrial, manufacturing and selected service oriented businesses, each with a leading position in sustainable niches, a strong cash flow profile, and actionable opportunities for both operational and strategic enhancement. Aurora Resurgence invests in debt and equity securities of middle-market companies and targets complex situations that are created by operational or financial challenges either within a company or a broader industry. For more information about Aurora Capital Group, visit www.auroracap.com or www.aurorares.com.