Burckhardt Compression to Acquire Minority Stake in US Based Arkos Field Services
December 22, 2015 | Ad hoc announcement
Reciprocating compressor manufacturer Burckhardt Compression signed and closed an agreement in which Burckhardt Compression acquired a 40% position in Arkos Field Services, an experienced US based compression and equipment service provider. Arkos Field Services serves its customers throughout fifteen strategically positioned service centers. The acquisition of this interest in Arkos Field Services provides Burckhardt Compression with enhanced access to the US service market which has the largest installed base of reciprocating compressors. Both parties agreed not to disclose any further terms of the acquisition agreement.
Burckhardt Compression and Arkos Field Services, LP (“Arkos”) signed and closed an agreement in which Burckhardt Compression acquired a 40% position in the parts and service company. Arkos, with a workforce of nearly 300 employees, is an experienced compression and equipment service provider for the compression industry, generating revenues of approximately $75 million annually. Arkos was formerly the after-market services arm of a major international compression leasing company and was acquired in a management buyout in August 2014. With headquarters in Houston, Texas, Arkos serves its customers through fifteen well established and strategically positioned service centers enjoying both industry leading safety and training records as well as an outstanding customer service reputation. An established track record of servicing all major compressor brands ensures a rapid response to requests for parts or service, technical guidance and support for all brands of reciprocating compressors. The growth company is managed by experienced leadership and is well positioned to be an ideal platform for further acquisitions in the compressor component and service industry. Certain assets of Burckhardt Compression (US) Inc.’s service business will be transferred to Arkos.
“Burckhardt Compression can benefit from Arkos’ extensive experience in servicing other brand reciprocating compressors for its joint business both inside and outside of the North American market. Our investment marks another step forward in the implementation of Burckhardt Compression’s strategy of offering customers comprehensive, flexible services and high-quality, advanced technology compressor components” said Marcel Pawlicek, CEO of Burckhardt Compression.
“With our new partnership, Arkos, a growth oriented organization, will continue to expand market share in Exploration and Production, Midstream, Transmission, Petrochemical and Refining sectors from Burckhardt Compression’s superior OEM technology and engineering expertise. We look forward to our partnership as an expanded customer service venue for major plant expansion projects, machinery overhauls and repackaging while expanding our business through the development of a line of high quality compressor components.” said Daniel Cannon, President and CEO of Arkos Field Services.
About Burckhardt Compression
Burckhardt Compression is one of the worldwide market leaders in the field of reciprocating compressors and the only manufacturer that covers a complete range of reciprocating compressor technologies. Its customized compressor systems are used in the upstream oil & gas, gas transport and storage, refinery, chemical, petrochemical and industrial gas sectors. Burckhardt Compression’s leading technology, high-quality compressor components and the full range of services help customers to minimize life cycle costs of their reciprocating compressor systems around the world. Since 1844 its highly skilled workforce has crafted superior solutions and set the benchmark in the gas compression industry.
Arkos is an experienced compression and equipment service provider that understands the issues and challenges of the natural gas industry. From installation and startup through operations and overhauls, we maintain, monitor and service equipment to allow our clients to concentrate on their core business. Short- and long-term maintenance agreements that meet specific operating and compliance requirements allow us to streamline processes, minimizing downtime and costs. Our PLC programming and control systems, combined with our expertise in remote monitoring systems, allow proactive upgrades of machine controls to keep them updated and avoid expensive breakdowns. Arkos’ real strength lies in its highly trained and strategically located workforce who undergo extensive safety and technical training. Arkos’ competency-based training programs provide the preparation needed to develop skills ranging from general mechanical knowledge through OEM-brand specific education for personnel with broad-based competencies. Specialized training activities are conducted at the regional locations or vendor sites, and our programs are modeled to meet the regulatory requirements of DOT, Operator Qualification and compliance certification.
Burckhardt Compression Holding AG
Marcel Pawlicek, CEO
Tel.: +41 (0)52 262 55 00
Fax: +41 (0)52 262 00 51
Arkos Field Services, LP
Daniel B. Cannon, President and CEO
Tel.: +1 832.783.5401