We have experienced a smooth transaction and are excited about the future of the company
Lubbock, Texas (PRWEB) August 23, 2017
Metallenium, LLC (Metallenium) a Limited Liability Company, headquartered in Lubbock, Texas is proud to announce the strategic merger of Service Compression (Service) in Van Buren, Arkansas, for an undisclosed amount of cash and stock. The transaction closed during the second quarter of 2017.
The transaction gives Metallenium an enhanced and recurring revenue stream with its expansion into the rental compression market. The synergy between Metallenium’s current compression and overhaul operations and Service’s fleet of rental compressors is unequal. The strategic merger builds on a very strong and stable company, with enhanced recurring revenues and increased growth opportunities.
Service Compression is headquartered in Van Buren, Arkansas and has 28 employees in Arkansas, Oklahoma, New Mexico and Texas. “We have experienced a smooth transaction and are excited about the future of the company,” says Rick Hamon, Vice President of Service Compression. The rental fleet consists of 380 units totaling approximately 35,000 horsepower. Service currently services Arkansas, Oklahoma, North Texas, Oklahoma and Texas Panhandles and SE New Mexico. All the previous owners have retained a position with Metallenium and will have a seat on the Board. The merging of the two companies will allow for expanded growth opportunities and the ability to secure more market share.
Service Compression is the third company added to the Metallenium Family since 2015. The company specializes in machining and rebuilding compressors along with field machining and holds a state of the art foundry used for compression applications. Metallenium has more than tripled its revenue through both strategic acquisitions and organic growth since 2015. “We are excited about the addition of Service Compression to our family of companies because of the strategic fit in our operations. More importantly however, the synergy between our management teams will provide for exponential opportunities within our industry.” states Rhett Newberry, President and CEO of Metallenium.