Founded in 1971, CSI fabricates, sells and maintains natural gas compressors and provides compression services and has one of the largest fleets of natural gas compression equipment in the US. CSI also fabricates and sells engine-driven oilfield fluid pump systems mainly for the international market.
For the year ended 31 March 2014, CSI had aggregate revenues of US$311 million, and EBITDA of US$82.3 million.
Stuart Brightman, TETRA’s president and chief executive officer, and chairman of the board of Compressco, said: “This acquisition is the next step in a series of strategic moves to position TETRA to generate improved and more predictable earnings and cash flows. We are excited to acquire a company with such a strong reputation in the industry, a diverse product offering, a solid management team, and a robust customer base.”
The combined organization will be headed up by Tim Knox, CSI’s current president. Compressco’s president Ron Foster will become senior vice president and chief marketing officer, while Compressco’s chief financial officer (CFO) James Rounsavall will serve as CFO.
“We believe that this blending of the current CSI and Compressco leadership will provide continuity for both organizations, while retaining valuable institutional knowledge and industry experience. When we have completed this acquisition, the combined management teams across TETRA, Compressco and CSI will be managing a world-class global enterprise that will create value for both TETRA and Compressco shareholders,” said Brightman.
The transaction is expected to close in early August.