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Universal Compression Announces Agreement to Purchase Louisiana Compressor Maintenance

June, 14, 2001

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.

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

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