Universal Compression Partners (UCLP) Agrees to Acquire Additional Assets from Universal Compression Holdings (UCO)

May 29, 2007 6:15 PM EDT

Universal Compression Holdings, Inc. (NYSE: UCO) and Universal Compression Partners, L.P. (Nasdaq: UCLP) announced that Universal Compression Partners has agreed to acquire from Universal Compression Holdings a fleet of approximately 715 compressor units, comprising approximately 270,000 horsepower, or approximately 13% (by available horsepower) of the combined Universal Compression Holdings' and Universal Compression Partners' domestic contract compression business. These assets serve the compression service needs of eight customers that will become customers of Universal Compression Partners after the closing of the transaction. Total value of the transaction is approximately $233 million and consideration will consist of a combination of debt assumption, cash and issuance of new limited partner units.

Excluding the impact of the selling, general and administrative and operating cost caps discussed below, the transaction is expected to be accretive to Universal Compression Partners' cash distributions per unit by approximately $0.15 to $0.20 per year. Universal Compression Partners intends to finance this acquisition through a combination of approximately 40% debt and 60% equity.

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