USA Compression Partners LP has entered into a definitive agreement to acquire J-W Power Company for approximately $860 million, expanding its scale and geographic diversification.
The acquisition will create a combined fleet of approximately 4.4 million active horsepower, enhancing USAC's position in key regions across the United States.
The transaction is expected to have meaningful near-term accretion on a Distributable Cash Flow basis and accelerate the path to deleveraging.
Expanded Scale
Creates a combined fleet of approximately 4.4 million active horsepower.
Enhanced Geographic Diversification
Adds over 0.8 million active horsepower across key regions including the Northeast, Mid-Con, Rockies, Gulf Coast, Bakken, and Permian Basin.
Diversified Business Lines
Includes aftermarket services, parts distribution, and specialized manufacturing services.
Financial Impact
Meaningful near-term accretion on a Distributable Cash Flow basis and attractive valuation.
Deleveraging
Accelerates path to sub-4.0x leverage with a deleveraging transaction.
- The acquisition of J-W Power Company will broaden customer relationships, enhance USAC's market leadership, and strengthen its ability to meet the growing demand for compression services in the natural gas industry.
- The transaction is expected to deliver significant financial benefits through synergies, expanded customer base, and added capabilities in specialized manufacturing services.
The acquisition of J-W Power Company represents a milestone step for USA Compression Partners LP, positioning the company as a leading provider of compression services with enhanced scale and market presence.