Natural Gas Services Group Acquires Flatrock Compression
Natural Gas Services Group (NGS) has acquired Flatrock Compression Holdings for $120 million, consisting of $110 million in cash and $10 million in newly issued NGS stock. The acquisition adds approximately 86,000 horsepower of rental compression fleet, primarily large horsepower and electric motor units, deepening NGS’s operational footprint in the Permian Basin and Eagle Ford. Management states the deal is immediately accretive to key financial metrics, priced at a 6.2x Adjusted EBITDA multiple, and leaves NGS with a pro forma leverage ratio of approximately 3x.
Key figures
- Deal Value Usd
- 120000000
- Ebitda multiple
- 6.2x
- Flatrock fleet hp
- 86000
- Cash consideration
- 110000000
- Pro forma leverage
- 3x
- Stock consideration
- 10000000
- Flatrock utilization
- 95%
- Credit facility limit
- 500000000
AI analysis
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