Danbury, Conn. -- In a deal valued at more than $42 million, Praxair Distribution, a subsidiary of Praxair, will acquire Salt Lake City -based Interwest Home Medical.

Under the agreement, expected to close in the second quarter of calendar 2001, Praxair will pay $42 million and assume Interwest's debt. In its latest quarterly report filed in February, Interwest said its total indebtedness was $22.3 million.

Praxair will combine its operations with Interwest's in areas where both companies provide services, officials said. Interwest has 25 branch locations in Utah, Arizona, Idaho, Nevada, Colorado, Alaska and California. Current Interwest officers and managers are expected to continue with Praxair, officials said.

"When added to our existing operations, Interwest Home Medical's services will substantially expand Praxair's ability to serve home health care patients in the Rocky Mountain region with a comprehensive portfolio of products, services and equipment," said Sally Savoia, Praxair's vice president, health care.

The company, which produces, sells and distributes atmospheric and process gases and high-performance surface coatings worldwide, also provides home respiratory products and services. In March, it boosted its worldwide respiratory service by opening 28 home respiratory locations in 10 countries, officials said, bringing its Praxair's total locations to 177 in 15 countries.

Company officials said Praxair plans to open another 10 to 15 locations this year. Its existing home oxygen business generates more than $100 million annually.