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Exhibit 99.1
[Hanover Letterhead]
FOR IMMEDIATE RELEASE
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FROM: G.A. KRAUT COMPANY INC.
275 Madison Avenue
New York, NY 10016
(212) 696-5600
Contact: Gerard Coffey
FOR: HANOVER COMPRESSOR COMPANY
12001 N. Houston Rosslyn
Houston, TX 77086
(281) 447-8787
Contact: Mr. Michael J. McGhan
HANOVER COMPRESSOR COMPLETES ACQUISITION OF DRESSER-RAND'S
COMPRESSION SERVICES BUSINESS FOR $190 MILLION
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STRATEGIC ACQUISITION SIGNIFICANTLY EXTENDS HANOVER'S GLOBAL POSITION
HOUSTON, September 5, 2000 -- Hanover Compressor (NYSE: HC), a leader in
outsourced natural gas compression and related gas handling services, today
announced it has completed its acquisition of the Dresser Rand Company's
compression services division from Ingersoll-Rand Company (NYSE: IR) for $190
million. Under the terms of the definitive agreement, half of the purchase
price was paid by the issuance to Ingersoll-Rand of 2,919,681 shares of newly
issued restricted Hanover common stock with the balance paid in cash.
"We are extremely excited to complete this transaction and are confident that it
represents the most outstanding acquisition completed by Hanover. The addition
of Dresser-Rand's excellent compression services organization enables Hanover to
access additional customers and compression market segments through an expanded
sales and service network, increase the scope and capacity of our compressor
rental and packaging operations and significantly add to Hanover's rapidly
growing international operations," said Michael J. McGhan, President and Chief
Executive Officer of Hanover. "We continue to experience a very strong level of
demand for our services. Through this acquisition we are able to better serve
our markets with the Hanover total solution package: high-quality, full range
products and services that are crucial to the production, gathering, processing,
storage and distribution of natural gas on a highly reliable, cost effective
basis worldwide."
As previously announced, the acquisition will combine Dresser-Rand compressor
services division's substantial operations and customer base with Hanover's
outsourced compression and gas handling operations, significantly extending
Hanover's capabilities around the world. Dresser-Rand compression services
business was organized 25 years ago to provide gas compression equipment and
related services and has been a leader in introducing outsourced compression and
related equipment to international markets. The Dresser-Rand compressor rental
fleet acquired by Hanover approximates 250,000 horsepower, averaging over 800
horsepower per unit, over 90,000 horsepower of which operates under long-term
contracts
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outside the U.S. Under terms of the agreement, Hanover has also acquired
Dresser-Rand's compressor-packaging operations based in Broken Arrow, Oklahoma,
a leader in the design and fabrication of gas compressor packages and related
equipment. Dresser-Rand's related sales and service network is also a major
provider of compression-related parts and service, extending Hanover's presence
around the world.
Hanover Compressor Company is a leader in outsourced 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 completion of the
transaction and 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 factors that could cause results to vary are 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,
and its Form 10-Q for the three months ended June 30, 2000.
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