Kodiak To Acquire CSI Compressco - Quick Facts

(RTTNews) - Kodiak Gas Services, Inc. (KGS) and CSI Compressco LP (CCLP) have executed a definitive merger agreement under which Kodiak will acquire CSI Compressco in an all-equity deal valued at approximately $854 million, including the assumption of $619 million of net debt. CSI Compressco unitholders will receive 0.086 shares of Kodiak common stock for each CSI Compressco common unit owned. Upon closing, CSI Compressco unitholders will own approximately 14% of the combined company.

The merger is expected to be immediately accretive to Kodiak's Discretionary Cash Flow and Free Cash Flow per share, and leverage-neutral to after expected synergies. Kodiak plans to launch a senior notes offering in the first quarter of 2024, the proceeds of which would ultimately be used to refinance CSI Compressco's debt.