Natural Gas Services Group has acquired Flatrock Compression Holdings for total consideration of $120 million, consisting of $110 million in cash and $10 million of newly issued NGS common stock.
The acquisition expands NGS’s (NYSE: NGS) rental compression footprint across the Permian Basin and Eagle Ford, adds new large customers and enhances its fleet with additional large-horsepower and electric motor-driven compression units. Flatrock Compression Holdings, founded in 2001, provides rental natural gas compression services primarily throughout the Permian Basin and Eagle Ford regions. The company operates a rental fleet of approximately 86,000 horsepower, with a significant concentration in large-horsepower and electric motor-driven compression units.
Gibson, Dunn & Crutcher served as legal advisor and Intrepid Partners acted as financial advisor to NGS. On the sell side, Greenridge Advisors served as financial advisor to Flatrock, while CBurke Legal and Nelson Mullins Riley & Scarborough acted as legal advisors.