Praxair Acquires Blue Rhino Assets in Canada
January 02, 2007
DANBURY, Conn., January 2, 2007 — Praxair Distribution, a division of Praxair Canada Inc., has acquired the Canadian propane tank-exchange business of Blue Rhino, a Ferrellgas Partners L.P. (NYSE: FGP) company.
Under the agreement, Praxair acquired over 900 propane tank-exchange display cages at retail locations across Canada. In addition, it will take over the contract to supply more than 300 retail gasoline stations belonging to Shell Canada Products with 20-pound propane tanks for their exchange program. In conjunction with this transaction, Praxair also signed a distributor agreement with Superior Tank Incorporated. Superior Tank will serve Praxair's propane tank-exchange customers in the Atlantic Provinces.
Previously, Praxair provided propane tank filling and distribution services for Blue Rhino retailers in the six largest provinces of Canada. Now, Praxair will not only fill the tanks but will also market propane tank-exchange under its own trademark, PropaneQuikSwap, in 10 provinces across Canada.
"With six propane fill plants serving Canada, we are uniquely positioned to service the 20-pound propane tank-exchange market," said Pat Heffernan, vice president and general manager — Canada, for Praxair Distribution.
Praxair, Inc. (NYSE: PX) is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2005 sales of $7.7 billion. The company produces, sells and distributes atmospheric and process gases, and high-performance surface coatings. Praxair products, services and technologies bring productivity and environmental benefits to a wide variety of industries, including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, metals and others. More information on Praxair is available on the Internet at www.praxair.com