Praxair Acquires PureCo2, Increases Carbon Dioxide Purification Capacity
Praxair acquires PureCo2
On September 21, 2016, Praxair (PX) announced that it had acquired purification and liquefaction plant from PureCo2 located in Price, Utah. However, Praxair did not disclose the financial terms of the transaction. The acquired plant produces 300 tons of carbon dioxide per day.
PureCo2 is a producer and distributor of liquefied food and beverage quality CO2. The acquired plant caters to businesses of food and beverage, metal fabrication, and water treatment. Previously, Praxair had ended possible merger talks with Linde AG.
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Armando Botello, Vice President of the West Region for Praxair’s US industrial gasses business, said, “The addition of this facility to Praxair’s network of carbon dioxide plants will further enable us to serve a growing customer base within the greater Salt Lake region, particularly in the food and beverage segment.”
Praxair’s stock price
Praxair shares fell 0.7% for the week ending September 23, 2016, and closed at $116.84. Praxair was trading 1.0% higher than the 100-day moving average price of $115.70, indicating an upward trend in the stock.
Analysts expect PX’s 12-month target price to be $126.40, implying a potential return of ~8.2% over the closing price of September 23, 2016. On a year-to-date basis, PX has risen 14.1%.
Praxair Peers’ Air Products and Chemicals (APD), W.R. Grace (GRA), and International Flavors and Fragrances (IFF) rose 1.1%, 0.5%, and 3.7%, respectively, that week. Investors can indirectly hold Praxair by investing in the SPDR S&P Dividend ETF (SDY), which had 1.1% of its total holdings in Praxair on September 23, 2016.