EQT Infrastructure subsidiary Kodiak Gas Services has agreed to acquire Pegasus Optimization Managers for an undisclosed amount.
Pegasus is being acquired from affiliates of Apollo Natural Resource Partners II.
Kodiak is one of the largest contract compression companies in the US and was bought by EQT Infrastructure in February.
The privately owned company is involved in the supply of compression equipment for oil extraction and natural gas transportation in the country.
Kodiak has more than 1.13 million revenue-generating horsepower (HP) deployed across key basins in the US. The acquisition of Pegasus will bring it to more than 2.5 million revenue-generating HP.
Kodiak president and CEO Mickey McKee said: “We are very excited about the acquisition of Pegasus. The combination of Pegasus and Kodiak furthers our strategy of creating the best performing contract compression company in the industry by employing the most talented workforce and utilising the most sought-after equipment.
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By GlobalData“The cultures, operating philosophies, customer service and employee focus of both companies are one and the same and we are confident that the combined company will continue to build on this strong foundation.”
Kirkland & Ellis acted as Kodiak and EQT’s legal counsel while Vinson & Elkins served as legal counsel to Pegasus and Apollo.
Jefferies served as the financial adviser for Pegasus and Apollo in relation to the deal.
The transaction is expected to complete in this fourth quarter following the receipt of customary regulatory approvals.
Upon completion of the acquisition, EQT Infrastructure IV will be 47% invested.
Pegasus president and CEO Chad Lenamon said: “The combined company’s values, partnership approach to problem-solving, and commitment to the customer experience will solidify it as the industry leader in efficiency, technology, and runtime.”