Kirkland & Ellis LLP advised Elite Compression Services, LLC and its sponsor JDH Capital Company on its decision to sell substantially all assets of Elite to Archrock, Inc. (NYSE: AROC), including approximately 430,000 of predominately large-horsepower compression assets for total consideration of $410 million. The transaction will be funded with approximately $205 million of cash and approximately 21.7 million newly issued Archrock common shares to the seller. In conjunction with the transaction, Harvest Midstream Company will acquire approximately 80,000 active and idle compression horsepower from Archrock for $30 million in cash. Archrock's Board of Directors has appointed energy industry veteran Jeffery D. Hildebrand, Executive Chairman and Founder, of Hilcorp Energy Company, which is affiliated with JDH Capital and Harvest Midstream, to Archrock's Board of Directors upon closing of the transactions.
The Kirkland team was led by transactional partners Jhett Nelson, Shubi Arora and Chad Smith and associates Bryan Jones, Will Eiland, Zack Montgomery, Jimmy Frost, Gordon Cranner and Will Mabry; capital markets partner Julian Seiguer and associates Mark Kam and Brooke Milbauer; tax partner Mark Dundon and associate Joe Tobias; debt finance partner Will Bos; environmental transactions partner Alex Farmer and associate Jim Dolphin; antitrust & competition partner Michael Thorpe; employee benefits partner Alex Mihalas and associate Caitlin Pyrce; labor & employment partner Michael Schulman; executive compensation partner Jennifer Pepin; and transactional partner Jessica Sicsu.