Lion Equity Partners Acquires Gas Engine, Compressor Parts Distributor: Global Compression Services

Lion Equity Partners purchased Global Compression Services (GCS)—an international dispenser of OEM and aftermarket parts and components—from Warren Equipment Co.

“GCS has built a reputation in the natural gas industry, recognized for its quality and commitment to customer satisfaction,” said Ari Silverman, Co-Founder and Partner of Lion Equity Partners. “We’re excited to partner with the GCS team as they continue to expand their offerings and drive growth within this critical sector.”

GCS, headquartered in Midland, TX, supplies parts, manufactures specialized components, and offers services for the natural gas market. The company owns strategic facilities across the United States and can provide tailored services to customers in various regions.

Aftermarket compressor part; image credit: Global Compression Services

“At GCS, we’ve always focused on delivering products and services that meet the evolving needs of our customers,” said Anthony Speer, Chief Executive Officer of GCS. “This partnership with Lion Equity is an exciting step forward, as their expertise and resources will help us strengthen our place in the market. Together, we will be able to pursue new growth opportunities that will allow us to better service our customers and position GCS for long-term success.”

Compressor Criticality

Compressors, specifically centrifugal compressors, are critical machinery within the oil and gas, energy, and industrial sectors, and work hand-in-hand with gas turbines to generate power across numerous applications. Anthony Brough and Tony Ruegger of Dora Partners & Co. state that the centrifugal compressors market is served by over 20 OEMs globally, producing over 2,000 units per year. In 2022, the value of this market (not including related aftermarket repairs) was approximately US$3.4 billion.

According to the duo, there are two types of centrifugal gas compressors: in-line (also called beam-type or between-bearings type) and integrally geared. In-line compressors have one or more impellers in a single casing, generally with the impellers located between two radial bearings on a single shaft. An exception to this rule is the single-stage gas pipeline compressor with an overhung impeller (both radial bearings on the same side of the impeller) and axial inlet. All impellers within an in-line compressor casing rotate at the same speed.

Outlook

Dora Partners has estimated that 2023 will result in new unit orders of more than US$3.6 billion, with a relatively consistent growth forecast over the next 10 years. Overall, the market is expected to grow most rapidly in the Asia-Pacific region and the industrial market segment. Upcoming market trends include growth in LNG production, carbon capture and storage, subsea compression, and hydrogen/ammonia applications, as worldwide decarbonization initiatives advance across the globe.

Most aftermarket revenue associated with centrifugal compressors comes from both parts and services that are required when something fails or revamps the equipment to modernize it or change its capabilities.