View all news

Universal Compression Completes Purchase of KCI, Inc.

July, 12, 2001

HOUSTON, July 12 /PRNewswire/ -- Universal Compression Holdings, Inc. (NYSE: UCO), a leading provider of natural gas compression services, today announced that it has completed the purchase of KCI, Inc., a Tulsa, Oklahoma- based fabricator of large horsepower compressors, for approximately $26.3 million in cash and 694,927 shares of Universal's common stock. Universal also repaid all of KCI's approximately $51 million in indebtedness.

"The acquisition of KCI provides us with significant fabrication expertise and capabilities and a 100,000 square foot fabrication facility in Tulsa, and adds approximately 125,000 horsepower to our rental fleet," said Stephen A. Snider, President and Chief Executive Officer. "The KCI team has an excellent reputation in pipeline and related natural gas markets. By combining KCI's pipeline experience with our field and gathering business, we now offer our customers a broader range of natural gas compression products and services," added Snider.

KCI was advised in the transaction by East Side Advisors, Inc.

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 integration and anticipated synergies of KCI and other recent acquisitions, the demand for Universal's products and services and operating conditions. 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, 713-335-7460, of Universal Compressions Holdings, Inc.; General Inquiries, Jeffrey Wilhoit of The Financial Relations Board BSMG Worldwide, 312-640-6757

Multimedia Files:

Categories: Press Releases
View all news