TETRA's gas compression unit makes $825M acquisition

|By:, SA News Editor

TETRA Technologies (TTI +4.8%) agrees to acquire Compressor Systems, owner of the fourth-largest U.S. gas compression fleet, for $825M.

The deal could make TTI affiliate Compressco Partners (NASDAQ:GSJK), a relatively young player in the growing U.S. market for pumping gas from aging wells, a rival to Exterran Partners (EXLP, EXH) and other large U.S. compressors, in terms of energy pumping horsepower.

TTI says the deal will increase Compressco's total horsepower offering from ~187K to 1M-plus, and allow Compressco to utilize an expanded range of compressor packages (from 20 HP units to 2,370 HP units) for compression services to customers.