Airgas, Inc. ( ARG - Snapshot Report ) has divested the assets and operations of its five branch locations in western Canada to Praxair Canada Inc., a subsidiary of Praxair Inc. ( PX - Analyst Report ) . The locations include Calgary, Red Deer and Edmonton in Alberta and Regina and Saskatoon in Saskatchewan which is a part of Airgas’ North Pacific region operations. The terms of the deal are undisclosed.

Praxair Canada produces, sells and distributes industrial, medical and specialty gases to the industries and market segments. In addition, the homecare business, Medigas, offers physicians and patients home oxygen therapy, continuous positive airway pressure (CPAP) & bi-level therapy, and home medical equipment.

The sell off came in the wake of Airgas’ decision to focus on its core business in British Columbia. Accordingly, it would deploy its capital resources in British Columbia to better serve the customers residing there.

Airgas’ adjusted earnings were $1.11 per share in the recently reported quarter, beating the Zacks Consensus Estimate of $1.07 as well as exceeding the year-ago quarter’s earnings of 88 cents. Total revenues rose 13% year-over year-to $1.24 billion, and were above the Zacks Consensus Estimate of $1.22 billion.

Of late, Airgas increased its quarterly dividend by 25% to 40 cents per share from 32 cents, adding value to the shareholders. The company, during fourth quarter of fiscal 2011, completed a $300 million repurchasing program by repurchasing 4.78 million shares at an average price of $62.76.

Airgas distributes industrial, medical and specialty gases along with hardgoods including wielding equipment and supplies in the U.S. It also produces atmospheric gases, carbon-di-oxide, dry ice, and nitrous oxide. The company is among the largest distributors of safety products as well as refrigerants, ammonia products, and process chemicals in U.S.

Airgas, which faces stiff competition from Air Products & Chemicals Inc. ( APD - Analyst Report ) , retains a short-term Zacks #3 Rank (Hold). Currently, we have a long-term Neutral recommendation on the stock.