Industrial gas producer and supplier,
) embarks on anotherimportant business venture of expanding its
operations in the southeast region of the United States; and has
joined hands with another major player in the industrial gas
industry, nexAir LLC for the purpose.
A Memphis-based company, nexAir is one of the largest suppliers
of high-quality industrial, specialty, medical, and bulk gases, dry
ice, welding equipment, welding supplies, and medical equipment.
The company also owns large ISO-certified cylinder gas plants in
the United States. Its operations are carried across 9 states with
The joint venture between the two parties entails carrying on
operations in Praxair's 8 gas distribution facilities in Georgia,
Alabama and Tennessee. The combined business, expected to generate
about $150 million in revenues, will be one of its kind to heighten
business prospects for both the companies in the Southeast United
States. Praxair will be an equity stake holder in the venture.
We believe such ties-ups will help Praxair achieve its long-term
target of annual organic sales growth of 8%-12% by 2015. Growing
popularity of Praxair's technologically advanced work has led to
around $2.5 billion in backlogs for the company. In addition,
strategic acquisitions as that of Canadian Cylinder & Gases
Inc. and five operating units of Airgas Inc. bode well for the
The current Zacks Consensus Estimate for the third quarter of
2012 is $1.40, representing a year-over-year decrease of 0.26%.
Estimates for the fiscal years 2012 and 2013 are $5.64 and $6.37,
reflecting annual growth of 3.88% and 12.96%, respectively.
We maintain a Neutral recommendation on Praxair. The stock also
carries a Zacks #4 Rank, implying a short-term (1-3 months) Sell
PRAXAIR INC (PX): Free Stock Analysis Report
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