KEY TAKEAWAYS: Louisiana Machinery and Mustang Machinery sell DPS to Kodiak Gas Services in $675 million cash-and-stock deal Acquisition expands Kodiak into distributed power and behind-the-meter energy markets Lamar Advertising acquires Cleveland Outdoor assets to deepen regional footprint Ma tt Bowers Automotive Group enters Indiana market with Brownsburg dealership purchase   Reserve-based Louisiana Machinery Company LLC and Mustang Machinery Company Ltd. have agreed to sell their Pearland-Texas joint venture, Distributed Power Solutions LLC (DPS), to publicly-traded Kodiak Gas Services Inc. in a cash-and-stock transaction valued at approximately $675 million. Representing a multiple of 7.4x DPS’s estimated 2026 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), the total consideration includes roughly $575 million in cash and $100 million in Kodiak common stock. The closing is expected in the second quarter of 2026. The acquisition marks Kodiak’s expansion beyond traditional contract compression services into behind-the-meter and distributed power markets.  This positions the company to capitalize on accelerating electricity demand tied to digital infrastructure and industrial power needs. “Distributed power is a natural extension of our large horsepower operations skillset and meaningfully enhances our ability to deliver critical energy infrastructure solutions to our oil and gas customers, while opening new avenues of growth in the fast-growing digital infrastructure end market,” said Kodiak President and CEO Mickey McKee. DPS provides turnkey distributed power generation solutions and operates a fleet of approximately 384 megawatts of Caterpillar engine- and turbine-driven generation assets serving data centers, microgrids, manufacturing facilities, and energy infrastructure customers under long-term contracted arrangements.  Strategically, the transaction leverages Kodiak’s existing technician network, maintenance infrastructure, and fleet monitoring capabilities while increasing exposure to contracted, recurring revenue streams and higher-growth power demand markets. Louisiana CAT and Mustang CAT are both authorized, major Caterpillar equipment dealers, with the ability to continue selling Caterpillar equipment to Kadiak. Lamar Advertising adds Cleveland assets in targeted bolt-on acquisition Lamar Advertising Company, headquartered in Baton Rouge, announced the acquisition of assets from Cleveland Outdoor Advertising in an all-cash transaction as part of its ongoing acquisition-driven growth strategy. Consistent with Lamar’s long-standing strategy, the acquisition represents a targeted bolt-on transaction aimed at deepening scale within an existing geography rather than pursuing large national platform expansion. The acquisition expands Lamar’s Cleveland portfolio by 31 bulletin faces and more than 40 junior bulletin faces. Increasing inventory concentration within a single metro market allows Lamar to enhance operating efficiency, improve sales coverage, and better leverage existing infrastructure and customer relationships while maintaining the stable cash flow characteristics typical of the out-of-home advertising sector. The transaction follows Lamar’s recent leadership transition within its outdoor division, including the promotion of Ross Reilly to president, and reinforces the company’s continued reliance on disciplined regional acquisitions to supplement organic growth. Matt Bowers Automotive Group expands into Midwest with Indiana acquisition A second Louisiana company completed a Midwest acquisition in February; though unlike Lamar, this marked its first expansion into the region. Matt Bowers Automotive Group acquired Bill Estes Chrysler Dodge Jeep Ram in Brownsburg, Indiana, an Indianapolis suburb, from publicly traded Asbury Automotive Group, marking the company’s first dealership in the state.  The acquisition expands the company’s footprint to five states. The dealership, now operating as Indy Chrysler Dodge Jeep Ram, represents Matt Bowers Automotive Group’s third Chrysler Dodge Jeep Ram franchise, and 13th dealership overall, and continues the company’s rapid geographic expansion beyond the Gulf Coast. Founded in 2016, the dealership group has grown into one of Louisiana’s fastest-expanding automotive retailers, with locations across Louisiana, Mississippi, Tennessee, Texas, and now Indiana. Owner Matt Bowers said the acquisition aligns with a broader strategy of entering high-growth markets while investing in underperforming Stellantis brands positioned for recovery. “2024 was carnage for those brands, and that’s when I started doing deals,” Bowers said in an interview with nola.com. “Last year brought some stability and 2026 will be progress. Next year, I see real tangible growth — and some of these locations that are selling 50 cars a month will be selling 88 instead. That’s real upside for me.” The move reflects Bowers’ longer-term goal of diversifying operations geographically rather than concentrating dealerships along the Gulf Coast, positioning the company for continued national expansion as consolidation accelerates across the U.S. auto retail sector. G.F. Gay Le Breton is managing director for Chaffe Associates Inc., responsible for the corporate finance activities of the firm. Mitch Murray is a corporate finance analyst with the firm. Investment banking services are provided by Chaffe Securities Inc., member FINRA/SIPC. For more information, visit http://chaffe-associates.com. ...read more read less