Kodiak Gas Services completed its acquisition of CSI Compressco, creating the industry's largest contract compression fleet.

The deal, announced in December, was an all-equity transaction valued at approximately $854 million, including assumption of $619 million in debt, Kodiak said on April 1.

CSI Compressco unitholders received 0.086 shares of Kodiak common stock for each CSI Compressco common unit owned. Certain CSI Compressco unitholders meeting specified requirements were elected to receive 0.086 limited liability company units representing economic interests in Kodiak's operating subsidiary (along with an equal number of shares of non-economic voting preferred stock of Kodiak) for each CSI Compressco common unit they held.

Each unit will be redeemable at the option of the holder for one share of Kodiak common stock following a six-month post-closing lock-up and subject to certain conditions.

Mickey McKee, Kodiak's founder and CEO, said the transaction allows the company to increase its scale and scope of our service offerings, “further expanding our industry-leading footprint in key operating areas such as the Permian Basin and Eagle Ford Shale.”

CSI Compressco units will no longer be publicly traded on the NASDAQ effective as of close of trading on April 1. Kodiak shares will continue to trade on the New York Stock Exchange.   

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