EQT Infrastructure portfolio company Kodiak Gas Services has agreed to acquire Pegasus Optimization Managers from affiliates of Apollo Natural Resource Partners II, a fund managed by affiliates of Apollo Global Management.
Financial terms were not disclosed.
Kodiak, acquired by EQT Infrastructure in February, provides compression equipment for the extraction of oil and transportation of natural gas across the country. It is the largest privatelyowned and one of the largest contract compression companies in the United States.
With the deal, Kodiak will have more than $2.5 million in revenue-generating power deployed across key basins. With this transaction, EQT Infrastructure IV will be 47 percent invested.
“The combination of Pegasus and Kodiak is truly transformational, as it will create a differentiated, large-scale leading contract compression company in the United States,” said Alex Darden, partner at EQT Partners and investment adviser to EQT Infrastructure. “Similar to Kodiak, Pegasus' differentiated service offering, strong commitment to customers and critical infrastructure make the company and combination unique in the industry, embodying EQT Infrastructure's approach of targeting high-quality businesses with transformation potential and strong culture.”
The transaction, which is conditioned on customary regulatory approvals, is expected to close in the fourth quarter of 2019.
