Natural Gas Services Group To Buy Flatrock Compression For $120 Mln

(RTTNews) - Natural gas compression equipment provider Natural Gas Services Group, Inc. (NGS) announced on Monday that it has acquired Flatrock Compression Holdings for $120 million in cash and stock.

The deal includes $110 million in cash and $10 million in newly issued NGS common stock.

The acquisition adds Flatrock's rental compression fleet of about 86,000 horsepower, with 95 percent utilization, and expands NGS's operations in the Permian Basin and Eagle Ford.

"This acquisition increases our operational density in both the Permian Basin and Eagle Ford, adds meaningful customer diversification and attractive opportunities for growth with several new large customers, and complements our fleet with the addition of significant large horsepower and electric motor units", Chief Executive of NGS Justin Jacobs said.

NGS expects the transaction to be immediately accretive to key financial metrics.

In pre-market activity on the NYSE, shares of Natural Gas Services Group were up 1.49 percent, changing hands at $43.00, after closing Friday's regular session 0.12 percent lower.