Compressco Partners LP executives expect the company’s planned $825 million purchase of Midland, Texas-based Compressor Systems Inc. to help it expand the Oklahoma City company quickly throughout the region.
“This is a very positive move that broadens the range of products that Compressco will be able to offer to customers,” said Peter Pintar, senior vice president at Tetra Technology, Compressco Partners’ parent company. “It broadens the geographic reach and adds scale to the combined business. It gives employees a broader range of opportunities. It’s not only a large transaction, but one that benefits both customers and employees.”
Compressor Systems is the largest privately held, full-service natural gas compression provider in the country. It also boasts revenue and earnings almost three times larger than its buyer.
The Texas company recorded revenues of $311 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of $82.3 million for the 12 months ended March 31. The Oklahoma City buyer recorded total revenue of more than $121 million and EBITDA of almost $35 million in 2013.
The purchase is expected to propel the Oklahoma City firm to No. 4 in its market, up from No. 10 currently, Compressco Partners CEO Ronald Foster said.
“This is a very exciting time for Compressco and a transformative move for us,” Foster said. “This opens up a big market for us in midstream gathering systems and conventional products we use with our GasJack compressors.”
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