(RTTNews) – Kodiak Gas Services, Inc. (KGS) and CSI Compressco LP (CCLP) have entered into a definitive merger agreement under which Kodiak will acquire CSI Compressco in an all-stock deal valued at approximately $854 million, including the $619 acquisition. million net debt. Holders of CSI Compressco units will receive 0.086 shares of Kodiak common stock for each CSI Compressco common unit they own. At closing, CSI Compressco shareholders will own approximately 14% of the combined company.
The merger is expected to be immediately accretive to Kodiak’s discretionary cash flow and free cash flow per share, and will be leverage neutral after expected synergies. Kodiak plans to launch a senior notes offering in the first quarter of 2024, the proceeds of which would ultimately be used to refinance CSI Compressco’s debt.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.