STUART, Fla.–(Business Wire)–NuCO2, the largest supplier in the U.S. of bulk CO2 systems and services for carbonating fountain beverages, today announced that it has acquired the bulk CO2 beverage carbonation business, including nearly 10,000 bulk CO2 customer accounts and related assets, from nexAir. Upon completion, NuCO2 will have a total of approximately 128,000 accounts. NuCO2 expects the acquisition to add revenues of approximately $13 million annually.
Based in Memphis, TN, nexAir`s bulk CO2 beverage carbonation business primarily spans 15 mid-south states and is complementary to NuCO2`s existing markets. NuCO2 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 NuCO2.
“The acquisition of nexAir`s bulk CO2 beverage carbonation business provides NuCO2 with a sizable addition to our existing bulk CO2 business and is an excellent fit with our market position and service capabilities in these geographies,” said Michael E. DeDomenico, NuCO2`s Chairman and CEO. “This business operates with high quality and service standards that are similar to those of NuCO2. We expect a smooth and seamless integration of the business into NuCO2`s existing service platform, as well as for all our customers.”
Terms of the acquisition were not disclosed. NuCO2 said the acquisition would be financed primarily with additional investment provided by Aurora Capital Group and its affiliates.
NuCO2 is the leading and only national provider of bulk CO2 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., NuCO2`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. NuCO2’s revenues are largely derived from the installation, maintenance and rental of bulk CO2 systems and delivery of beverage grade CO2, which are increasingly replacing high pressure CO2, 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. NuCO2 provides systems and services that allow its customers to spend more time serving their customers. Visit NuCO2`s website at www.nuco2.com.
About Aurora Capital Group
On May 28, 2008, affiliates of Aurora Capital Group (“Aurora”) completed the acquisition of NuCO2. 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.