Industrial gas producer and supplier,
) recently announced the acquisition of the merchant carbon
dioxide business from Tri-State Carbonic, LLC. Financial terms
have been kept under wraps for this acquisition.
Tri-State is well recognised as a bulk carbon dioxide gas
producer, especially for industrial purposes. The acquisition
adds Tri-State's carbon dioxide plant in Lawrenceburg, Indiana to
Praxair's existing CO
Portfolio and will enable the latter to better serve its
customers in the Cincinnati and Louisville areas.
So far acquisitions have been Praxair's preferred way of
expansion into new businesses and markets. Prior to this
acquisition, the company in Mar 2013 completed the acquisition of
California-based beverage carbonator, NuCO
Inc for $1.1 billion cash. The addition of the NuCO
assets enhanced Praxair's product portfolio and enabled it to
leverage benefits by expanding the fizz business to other parts
of the world.
Praxair seems well positioned to achieve its long-term target
of annual organic sales growth of 8%-12% by 2015. The company's
policy of returning values to shareholders through dividends and
share buybacks as well as strategic acquisitions and joint
ventures bodes well for the company.
Praxair is slated to release its first quarter 2013 results on
Apr 24, 2013. The current Zacks Consensus Estimate for the first
quarter of 2013 is $1.38, representing a year-over-year increase
of 0.1%. Estimates for 2013 and 2014 are $6.00 and $6.81,
reflecting annual growth of 7.8% and 13.4%, respectively.
The stock currently carries a Zacks Rank #3 (Hold). Other
stocks to watch out for in the industry are
LyondellBasell Industries NV
), each with a Zacks Rank #2 (Buy).
CELANESE CP-A (CE): Free Stock Analysis
LYONDELLBASEL-A (LYB): Free Stock Analysis
OLIN CORP (OLN): Free Stock Analysis Report
PRAXAIR INC (PX): Free Stock Analysis Report
To read this article on Zacks.com click here.