Target: NuCO2 Inc.
Price: $1 billion
Seller: Aurora Capital Group
Financial Adviser: Goldman Sachs Group
Beverage carbonation company NuCO2 Inc. is exploring a sale and hopes to bring in more than $1 billion, three people familiar with the matter told sister news service Reuters. The Stuart, Fla.-based company, owned by private equity firm Aurora Capital Group, has hired Goldman Sachs Group to run an auction, the sources said.
NuCO2 produces beverage-grade carbon dioxide that is added to fountain soda and draught beer, and provides delivery services to national restaurant chains, convenience stores and entertainment locations. The auction comes five years after Aurora Capital took NuCO2 private for $487 million in 2008. The company withdrew plans for an initial public offering in July 2012, more than two years after it first filed to list its stock.
The people asked not to be named because the process is not public. Aurora Capital had no immediate comment and Goldman Sachs declined to comment.
NuCO2 has roughly $100 million in EBITDA and could command a multiple of more than 10x, two of the people said, adding that the auction is early in the second round. NuCO2’s fountain beverage equipment and services are used to carbonate fountain beverages at about 145,000 U.S. locations nationwide, according to its Web site.
Greg Roumeliotis and Soyoung Kim are correspondents for Reuters in New York.