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Applied Process Solutions Inc. |
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Hanover Compressor (NYSE: HC) Buys
Applied Process Solutions Inc. (APSI)
Houston, Texas - June 5, 2000 - Hanover Compressor Company (NYSE:HC),
the leader in outsourced compression services for the
natural gas industry, today announced completion of
its acquisition of Applied Process Solutions, Inc.
(APSI), one of the world's leading suppliers of natural
gas and oil processing equipment, in an all-stock transaction
Hanover acquired the privately held Tulsa, Oklahoma-based
company in exchange for 2,300,000 shares of Hanover
common stock.
"The acquisition of APSI provides Hanover shareholders
with a significant extension of Hanover's global market
reach in outsourced services to the natural gas industry,"
said Michael J. McGhan, President and Chief Executive
Officer of Hanover Compressor. "It enables us to provide
additional process treating services on an outsource
basis to large customers, who already have experienced
and understand the value of Hanover's core contract
gas compression service. The various units of APSI add
world-class process design and manufacturing capability,
substantial international experience, and geographically
complementary customer relationships that enable Hanover
to compete more effectively on large-scale, turnkey
projects in Europe, Africa, the Middle East and the
Asia-Pacific region."
Applied Process Solutions, a leading designer,
manufacturer and installer of a full range of skid-mounted
processing equipment for the natural gas industry, incorporates
such well-established companies as T.H. Russell Co.
of Tulsa, Oklahoma, and Maloney Industries of Calgary,
Alberta, Canada. APSI has sales, engineering and manufacturing
facilities in Tulsa, OK, Houston, TX, Calgary and Edmonton,
Alberta, Canada, Mexico City, Beijing, China and London
and Birmingham, England, positioning the company to
significantly add to Hanover's geographic market reach
and existing outsourced turnkey gas treating and gas
handling business. APSI has almost 500 employees and
production facilities in the U.S., Canada and the U.K.
APSI had 1999 revenues of $73.9 million and anticipates
revenues of approximately $95 million this year.
Hanover Compressor Company is the market leader
in full service natural gas compression and a leading
provider of service, financing, fabrication and equipment
for contract natural gas handling applications. Hanover
provides this equipment on a rental, contract compression,
maintenance and acquisition leaseback basis to natural
gas production, processing and transportation companies
that are increasingly seeking outsourcing solutions.
Founded in 1990 and a public company since 1997, its
customers include premier independent and major producers
and distributors throughout the Western Hemisphere.
This news release contains forward-looking statements
intended to qualify for the safe harbors from liability
established by the Private Securities Litigation Reform
Act of 1995, including statements regarding the demand
for Hanover's products and services. These projections
and statements are based on management's estimates and
assumptions with respect to future events and financial
performance and are believed to be reasonable, though
are inherently uncertain and difficult to predict. Actual
results could differ materially from those projected
as a result of certain factors. A discussion of these
factors is included in the Company's periodic reports
filed with the Securities and Exchange Commission including
its Form 10-K for the fiscal year ended December 31,
1999.
CONTACT: G.A. KRAUT COMPANY INC., New York
Gerard Coffey, 212/696-5600
or
HANOVER COMPRESSOR COMPANY, Houston
Mr. Michael J. McGhan, 281/447-8787
Relevant Web Site:
Hanover Compressor Company
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