Industrial gases firm Praxair and Memphis-based distribution and welding supplies company nexAir on Tuesday unveiled plans to form a joint venture in the Southeast US.
Praxair will contribute eight branches of its packaged gas distribution business in Georgia, Alabama and Tennessee and acquire an equity stake in the combined business, which will have sales of approximately $150 million, the companies said.
Developing a closer relationship with nexAir allows both companies to expand into new areas that will benefit from our combined capabilities, said John Panikar, president of Praxair Distribution, the packaged gas subsidiary of Praxair.
nexAir has been a successful packaged gas distributor in this region and their growth and success have helped our industrial gases business tremendously, Mr. Panikar added. Together we will have a stronger support network and broader set of services for customers in the region.
We have worked with Praxair for 72 years and we are confident this expansion of that relationship will mean future opportunities for all involved, said Kevin McEniry, nexAir CEO.