HOUSTON, Sept. 18 /PRNewswire/ -- Universal Compression Holdings, Inc.
(NYSE: UCO) today announced it has completed its merger with Gas Compression
Services, Inc. (GCSI), based in Traverse City, Michigan.
GCSI adds approximately 170,000 aggregate horsepower to Universal's fleet
and is expected to be immediately accretive to Universal's earnings per share.
GCSI adds high quality compression equipment with excellent utilization rates,
all of which is located domestically. The company operates a significant
amount of customer-owned equipment and owns fabrication and overhaul
facilities in Michigan and Texas. GSCI's annual revenue for the fiscal year
ended July 31, 2000 was approximately $36 million.
Pursuant to the merger agreement, GCSI merged with and into a wholly owned
operating subsidiary of Universal Compression, Inc., a wholly owned operating
subsidiary. The shareholders of GCSI received an aggregate of approximately
$12 million in cash and 1,400,726 shares of newly issued restricted Universal
common stock in the merger. Universal assumed approximately $57 million in
related debt and operating leases of GCSI. In addition, Universal assumed
approximately $6 million of debt related to customer equipment financing and
the associated customer notes receivable.
"The merger with GSCI is in keeping with our growth strategy and is
another of the steps we are taking to create shareholder value by enhancing
our position as one of the leaders in the gas compression services industry,"
said Universal Compression President and Chief Executive Officer Stephen
Snider. "The combination will increase Universal's presence with several key
customers and in additional market segments. Over the past twenty years, GCSI
has earned a great reputation in the gas compressor rental industry through
its excellent service and equipment. Our two businesses are very similar with
respect to operating procedures and equipment, therefore we are confident that
GCSI's operations can be integrated quickly and without difficulty."
Universal is headquartered in Houston, Texas and is a leading natural gas
compression service company providing a full range of rental, sales,
operations, maintenance and fabrication services and products to the domestic
and international natural gas industry.
Statements about Universal Compression Holdings' or Gas Compression
Services' outlook and all other statements in this release other than
historical facts are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements rely on a number of assumptions concerning future events and are
subject to a number of uncertainties and factors, many of which are outside
Universal's control, that could cause actual results to differ materially from
such statements. While Universal believes that the assumptions concerning
future events are reasonable, it cautions that there are inherent difficulties
in predicting certain important factors that could impact future performance
and the successful integration of the businesses. These factors, when
applicable, are discussed in Universal's filings with the Securities and
Exchange Commission, copies of which are available to the public. Universal
disclaims any intention or obligation to revise any forward-looking statements
whether as a result of new information, future event, or otherwise.
SOURCE Universal Compression Holdings, Inc.
CONTACT: Richard W. FitzGerald, Chief Financial Officer of Universal Compression Holdings, Inc., 713-335-7000, or General Inquiries, Mike Arneth of The Financial Relations Board, 312-640-6734