backOn December 19, 2023, Kodiak Gas Services, Inc. (NYSE: KGS) (“Kodiak”) and CSI Compressco LP ("CSI Compressco") (NASDAQ: CCLP) announced that they have executed a definitive merger agreement under which Kodiak will acquire CSI Compressco in an all-equity transaction valued at approximately $854 million, including the assumption of $619 million of net debt, based on the closing price of Kodiak’s stock on December 18, 2023. The combined company will have an “Up-C” structure at closing. The transaction is expected to close in the second quarter of 2024, subject to certain regulatory approvals and other closing conditions, including Hart Scott Rodino Act clearance. Kodiak expects 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 at closing of the acquisition.
Kodiak Gas Services, Inc. is one of the largest contract compression services providers in the continental United States with a fleet of over 3.2 million horsepower. Kodiak focuses on providing contract compression services to oil and gas producers and midstream customers in high–volume gas gathering systems, processing facilities, multi–well gas lift applications and natural gas transmission systems. CSI Compressco is a provider of compression services and equipment for natural gas and oil production, gathering, artificial lift, transmission, processing, and storage. The King & Spalding team advising Kodiak Gas Services on the acquisition consisted of Keith Townsend, Robert Leclerc, Billy Padula, John Morris, George Hwang, Savannah Padgett, Nicholas Gambino, and Archie Wilson. Hap Shashy and John Green advised on tax matters. Meredith O’Leary, Jessica Stricklin, and Emily Mann advised on benefits. Jeff Spigel, Brian Meiners and Salomé Cisnal de Ugarte advised on competition. Jesse Pauker advised on labor.