By Stephen Nakrosis
Archrock will buy Natural Gas Compression Systems for $357 million in cash and stock.
The energy infrastructure company said on Monday it will use $298 million of cash and issue about 2.3 million common shares to the sellers to fund the transaction. Archrock said the deal is expected to be immediately accretive to per share earnings and money available for dividend payments. The transaction is expected to close in the second quarter.
"We have been disciplined about transforming our portfolio by investing in attractive, high-return opportunities, and believe that this transaction will enable us to build on these efforts and drive durable, profitable growth for Archrock shareholders," Archrock President and Chief Executive Officer Brad Childers said.
The deal will expand Archrock's presence in Permian Basin and other regions, Childers said. It will also increase the company's scale and expand customer relationships.
Natural Gas is a packager of reciprocal and rotary screw natural gas compressors available for sale or lease, according to the company's website.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
March 10, 2025 18:42 ET (22:42 GMT)
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