The USA Compression Partners is a leading business house based in Austin. It is looking to expand its compression business by buying this business of Energy Transfer Partners for a deal of $1.8 billion. This deal will help Energy Transfer to allocate the cash for its important pipeline projects.
The USA compression will be able to double its compression size after acquiring the business of Energy Transfer. Its capacity will rise to 3.4 million. The USA Compression’s main aim is to get the natural gas flowing through the pipelines and hence it’s eager only for the compression business. This is apart from the $1.2 billion in cash.
The deal between the USA Compression and Energy transfer includes sales of the compression subsidiaries of Energy Transfer, CDM Environmental and Technical Services, and CDM Resource Management.
The CEO of USA Compression, Eric Long, is very happy to have pulled off this new compression expansion deal. He said that the CDM was successful in building the compression and treating solutions. He is excited that the combination of their resources and CDM can do wonders for his compression business. He feels that this new partnership will help in business to grow and expand. He is confident of offering top-end customer service.