NEW YORK (TheStreet) --Shares of TETRA Technologies Inc. (TTI) are higher by 4.86% to $11.66 in mid-morning trading on Monday after the oil and gas services company announced its majority owned, publicly-traded partnership Compressco Partners L.P (GSJK) purchased the outstanding shares of Compressor Systems Inc. (CSI) for $825 million in cash.
The deal is expected to increase Compressco's total horsepower offering from approximately 187,000 to over 1,045,000, and allow Compressco to utilize an expanded range of compressor packages for compressor services to customers, the company said.
The expansion is expected to allow Compressco to operate in the compression market at a broader level, the company added.
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The transaction is expected to close in August.
Separately, TheStreet Ratings team rates TETRA TECHNOLOGIES INC/DE as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate TETRA TECHNOLOGIES INC/DE (TTI) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."