Edit ModuleShow Tags

Compressco to Buy Compressor Systems Inc.

Acquisition will forge a 1 million hp company


Published:

Compressco Partners L.P. is buying Compressor Systems Inc. (CSI) from Warren Equipment Co. for US$825 million. The deal is expected to close in early August.

The purchase will boost Compressco’s fleet from 87,000 to 1,045,000 hp (65 to 780 MW) and will allow it to offer an expanded range of compressor packages, from 20 hp to 2370 hp (15 to 1760 kW).

TETRA Technologies Inc. is the indirect 100% owner of Compressco’s general partner. Following the transaction, TETRA’s ownership of the Compressco Partners will be reduced to approximately 46%.

CSI, founded in 1971 and based in Midland, Texas, makes, sells, and maintains gas compressors. It is the largest privately-held gas compression service provider in the United States.

It has one of the nation’s largest fleets, with more than 275 units in the 1000 hp (745 kW) and larger range. It also makes engine-driven oilfield fluid pump systems, primarily for the international market. For the 12 months ended March 31, CSI’s revenues were US$311 million and EBITDA was US$82.3 million.

Ronald Foster, Compressco Partners president, said, “We are excited to broaden our existing services to include production enhancement at the wellhead, vapor recovery at production facilities, gas-lift artificial lift in completion and production, and infrastructure compression for midstream and downstream customers.

“Part of the strategic rationale for this transaction includes the creation of synergies of between US$5 million and US$10 million on an annualized basis beginning in 2015,” he said.

CSI President Tim Knox will become Compressco’s senior vice president and chief marketing officer. James Rounsavall will continue as Compressco’s chief financial officer.

“When we have completed this acquisition, the combined management teams across TETRA, Compressco and CSI will be managing a world-class global enterprise that will create value for both TETRA and Compressco shareholders,” Foster said.

 

Update: Compressco Partners Improves Utilization Rate

Edit ModuleShow Tags

Archive »Recent Articles

Exterran Spins Off Foreign, Fabrication Ops

Exterran Holdings Inc. is separating its international contract operations, international aftermarket services and global fabrication businesses into a standalone, publicly traded company (SpinCo), resulting in two independent companies.

GE Technology For Floating LNG Facility

GE Oil & Gas will supply a gas turbine-driven compressor train and mechanical drive technology to Malaysia’s national oil and gas company, Petronas, for a second floating liquefied natural gas (FLNG) facility being developed off the coast of East Malaysia.

Rexnord To Acquire Euroflex

Rexnord Power Transmission (RXN) has entered into a definitive agreement to acquire Euroflex Transmissions (India) Pvt. Ltd.

T.F. Hudgins Acquires Jamison Products

T.F. Hudgins Inc. has completed the acquisition of Jamison Products, a Houston, Texas-based provider of engineered pipeline and filtration products.

MSHS Opens New Orleans Engine Service Facility

Motor-Services Hugo Stamp Inc. (MSHS) has expanded its service facility in New Orleans, Louisiana.