Burckhardt Compression exercises a call option to acquire a majority interest in Arkos Field Services in the US
July 09, 2019
Burckhardt Compression North America Services LLC, an indirect subsidiary of Burckhardt Compression, has exercised its first call option to purchase an additional 20% interest in Arkos Group LLC, which owns Arkos Field Services, LP. With this step, Burckhardt Compression North America is raising its total interest in the company to 60%. All of the company’s 16 sites will remain in operation.
In December 2015, Burckhardt Compression North America Services acquired a 40% interest in Arkos Group. The company is a specialist for gas compressor services and components. Its headquarters are in Waller, Texas and it operates 15 service centers across the US. After acquiring this initial interest in the company, Burckhardt Compression, through other subsidiaries, combined its operating sites in the US with those of Arkos Field Services. All of the current 16 sites will remain in operation, as geographic proximity to the customer is so important in Arkos’ core business: the upstream market. The upstream sector of the gas industry is engaged in the exploration and production of natural gas.
The call option to acquire an additional 20% stake was part of the original limited liability company agreement of Arkos Group and the transfer of the additional 20% stake will be completed at a future date once all of the legal formalities have been completed. Burckhardt Compression North America Services has another call option to potentially acquire the remaining 40% at a future date.