Burckhardt Set For Additional Arkos Stake, But Dispute Arises
By CT2 Staff09 July 2019
Burckhardt Compression North America Services, an indirect subsidiary of Burckhardt Compression, is set to acquire an additional 20% interest in Arkos Group, which owns Arkos Field Services.
Arkos Group, however, issued a statement stating the Burckhardt affiliate claimed this move will occur once the legal formalities are complete. According to Arkos, Burckhardt has not properly communicated those formalities, which include a resolution of pending litigation between the two companies.
According to the Arkos’ statement, “Prior to any legitimate transfer of units occurring, ongoing legal proceedings must be resolved. Arkos strongly disputes the validity of the equity call and has no plans to change the management or ownership structure.”
The Burckhardt subsidiary acquired 40% interest in Arkos Group in December 2015. The transfer of the 20% stake from Arkos to Burckhardt is set to occur at a future date following all legal procedures. Burckhardt Compression North America Services has the option to acquire the remaining 40% stake in the future, the company said.
Arkos Group, headquartered in Waller, Texas, specializes in gas compressor services and components, with its core business serving the upstream market. After the first acquisition, Burckhardt, through other subsidiaries, combined its operating sites in the United States with Arkos Field Services sites. All 16 of those sites will remain in operation, according to Burckhardt.