Canadian midstream energy company Enerflex Ltd. is acquiring U.S.-based Exterran Corp. for $735 million to become a global provider of natural gas compression, electric power generation, and related engineering services. We expect the transaction to close in the second or third quarters of 2022. We assigned our 'BB-' issuer credit rating to Enerflex. The stable outlook reflects our expectation that Enerflex will successfully close its acquisition of Exterran and integrate the company while maintaining leverage in the low-3x area. Enerflex will have a revenue mix that is well-balanced between North America (about 35%), Latin America (about 25%), the Middle East (about 33%), and Asia Pacific (about 7%). In addition, it will derive about 70% of its gross margin from contract
