US: NuCO2 acquires rival for US$2.4m
NuCO2 Inc, the largest supplier in the US of bulk CO2 systems and services for carbonating fountain beverages, has acquired the bulk CO2 beverage carbonation business of Bay Area Equipment Co.
The acquisition, announced today (4 October), includes approximately 2,500 bulk and high-pressure CO2 accounts, plus related assets. Bay area is based in Pacheco, California.
"This is an important, strategic acquisition that strengthens our existing sales, marketing, and operations activities in this market where we see considerable opportunity for growth," said Jack Wilson, chief customer officer of NuCO2. "In addition, it will contribute to improved customer density, even greater customer service levels, and increased operating efficiency in this market."
NuCO2 said it anticipates that the acquisition will be accretive to operating and profit margins in the current fiscal year. The purchase price for the customers, installed equipment, and related assets was approximately US$4.9m and it is expected to produce approximately US$2.4m in sales annually.
"We are very pleased to have the owner and president of Bay Area Equipment, Mark Langford, join the NuCO2 family as part of this acquisition. Mark will continue to run this business unit as well as oversee other growing operations in the Northern California region," said Michael E. DeDomenico, CEO of NuCO2. "Mark has built a terrific business and we are also gaining the benefit of his management skills and experiences within the NuCO2 team," DeDomenico added.
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