HOUSTON, June 14 /PRNewswire/ -- Universal Compression Holdings, Inc.
(NYSE: UCO), a leading provider of natural gas compression services, today
announced that it has entered into a purchase agreement to acquire Louisiana
Compressor Maintenance Co., Inc. ("LCM"), a Louisiana-based private company
serving pipeline and other natural gas-related companies, for approximately
$25 million in cash.
"The acquisition of the well-respected LCM business is an important
element of our expansion into pipeline compression. Founded in 1976, LCM
provides quality compressor maintenance, repair, overhaul and upgrade services
to domestic natural gas pipeline and related markets. We are pleased that key
managers Ronnie and Danny Cannon are continuing with the LCM operation
following the acquisition," said Stephen A. Snider, President and Chief
Executive Officer. "This transaction is complementary with our previously
announced pending acquisition of KCI, Inc., a provider of compressor
fabrication services to the natural gas pipeline and gathering markets. With
the addition of these excellent companies, Universal will provide an
integrated package of products and services for both field and pipeline
compression," added Snider.
The Company expects the LCM acquisition to add revenue of approximately
$18 million and EBITDA of approximately $4.5 million in the first full year of
operations, under current operating conditions. This transaction, subject to
various closing conditions, is expected to be completed in 30 days.
Universal, headquartered in Houston, Texas, is a leading natural gas
compression services 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's 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, which 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 the future performance or results of its business. Among the important
factors that could cause actual results to differ materially from those
indicated by such forward-looking statements are successful completion of the
pending KCI and LCM acquisitions, integration of these companies and other
recent acquisitions and the demand for Universal's products and services.
These risk factors are discussed in Universal's filings with the Securities
and Exchange Commission, copies of which are available to the public.
Universal expressly disclaims any intention or obligation to revise or update
any forward-looking statements whether as a result of new information, future
events, or otherwise.
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SOURCE Universal Compression Holdings, Inc.
CONTACT: David Oatman, Director, Investor Relations of Universal Compression Holdings, Inc., 713-335-7460; or General Inquiries, Jeffrey Wilhoit of The Financial Relations Board BSMG Worldwide, 312-640-6757