Kodiak Gas Services to acquire CSI Compressco in an $854M all-equity deal (NASDAQ:CCLP)

Kodiak Gas Services (NYSE:KGS) to acquire CSI Compressco (NASDAQ:CCLP) in an all-equity transaction valued at approximately $854 million, including the assumption of $619 million of net debt, deepening its footprint in key operating areas such as the Permian Basin and Eagle Ford Shale.
CSI Compressco unitholders will receive 0.086 shares of Kodiak common stock for each CSI Compressco common unit owned.
The addition of CSI Compressco’s fleet will give Kodiak the largest contract compression fleet in the industry with 4.3 million revenue-generating horsepower, while also extending Kodiak’s service offerings deeper into the natural gas value chain, Kodiak Gas Services (KGS) Tuesday reported.
The combined entity is expected to generate approximately $630 million in 2024 Adjusted EBITDA after the expected annual run-rate cost synergies of at least $20 million.
The transaction is expected to be immediately accretive to Kodiak’s Discretionary Cash Flow and Free Cash Flow per share, and leverage-neutral to Kodiak after expected synergies.
Source: Press Release

‘I want to die “young” as late as possible,’ says 83-year-old triathlete doctor who reinvented himself after a midlife crisis