TETRA Technologies, Inc. (NYSE:TTI) Purchases Outstanding Shares of Compressco Partners LP(NASDAQ:GSJK); Tetra Shares Rise 5%

TETRA Technologies, Inc. (NYSE:TTI) announced on late Sunday that its majority owned, publicly-traded partnership, Compressco Partners LP(NASDAQ:GSJK), has entered into a definitive agreement to purchase all the outstanding shares of Compressor Systems for $825 million in cash.

Compressor Systems is the largest, privately-owned, full-service natural gas compression provider in the U.S. and owns the fourth largest fleet of natural gas compression equipment. TTI says the deal will increase GSJK’s total horsepower offering from 187,000 to approximately 1 million and allow GSJK to utilize an expanded range of compressor packages for compression services to customers.

According to Tetra CEO Stuart Brightman, “following the acquisition, we expect to grow capital expenditures to between $90 and $100 million in 2015, which will provide incremental revenues and is expected to facilitate additional increases in cash distributions.”

Compressco management expects to be able to recommend to its Board of Directors a 12-14% increase in the cash distribution per unit for the quarter ending December 31, 2014, compared to the $0.4525 distribution per outstanding unit for the quarter ended June 30, 2014.

Shares of TTI are up more than 5% to $11.68 with a 52-week range of $9.41 to $13.43. Shares of GSJK are over 1% higher at $26.48 with a 52-week range of $18.07 to $31.00.