Archrock to acquire Natural Gas Compression Systems for $357M

Archrock (AROC) and Natural Gas Compression Systems, a high-quality provider of contract gas compression services, announced that they have entered into definitive agreements under which Archrock will acquire NGCSI and NGCSE, in a cash and stock transaction valued at approximately $357M. Under the terms of the agreement, Archrock intends to fund the $298M cash portion of the total consideration with available capacity under its ABL credit facility. Archrock will issue up to 2.312M new Archrock common shares to the sellers to fund the remaining transaction value. The transaction funding approach is consistent with Archrock’s stated target leverage ratio range of between 3.0 times and 3.5 times. The transaction has been unanimously approved by the Board of Directors of Archrock and is expected to close in the second quarter of 2025, subject to customary closing conditions. The $357M transaction is expected to be immediately accretive to Archrock’s earnings per share and cash available for dividend per share.