Praxair Agrees to Acquire Texas Welders Supply Company
December 22, 2011
DANBURY, Conn., December 22, 2011 — Praxair Distribution, Inc. (PDI), a subsidiary of Praxair, Inc. (NYSE: PX), announced it has executed a definitive agreement to acquire Houston, Texas based Texas Welders Supply Company (TWSCO). The companies expect to close the transaction by December 31, 2011, subject to customary closing conditions. Financial terms of the transaction were not disclosed.
TWSCO, a long-time distributor of Praxair, is the largest independent gas and welding products distributor in the greater Houston area with projected 2011 sales of $56 million and 130 employees. TWSCO operates from four locations, including a state-of-the-art cylinder filling plant and specialty gas laboratory located in north Houston. The company was formed in 1983 and is majority-owned and controlled by the founding Chenoweth family.
“The Chenoweths have a multi-generational history of building successful industrial gas distributorships in Houston,” said John Panikar, president of PDI. “TWSCO represents the culmination of their efforts and is one of the top 15 independent distributors in the country. It has a world class facility and talented people to support growth. We are excited to have the TWSCO employees join the Praxair team and look forward to serving our new customers.”
"Praxair is the best operational and strategic fit for us," said TWSCO President Scott Chenoweth, one of the three majority shareholders. "Our dedicated employees have delivered quality products and services with complete confidence and customer satisfaction, and combining our business with Praxair will continue to benefit our customers and employees."
PDI has a growing packaged gases presence in the Houston area, having acquired another independent distributor, National Alloy, in August 2011. Houston is among the top five welding markets in the U.S.
“TWSCO’s sales, technical support and related services are directed primarily to the energy sector, which, combined with Praxair’s broader presence serving global refinery and petrochemical customers along the Gulf Coast with pipeline and bulk liquid gases, expands Praxair’s capabilities to supply industrial and specialty gases, equipment and services to these customers,” added Panikar.
Praxair, Inc. is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2010 sales of $10 billion. The company produces, sells and distributes atmospheric and process gases, and high-performance surface coatings. Praxair products, services and technologies are making our planet more productive by bringing productivity and environmental benefits to a wide variety of industries including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, metals and others.