Halliburton to acquire Boots & Coots stocks
Texas (US), April 10, 2010
Halliburton, one of the largest energy services provider, has entered into a definitive merger deal to acquire all of the outstanding stock of Boots & Coots, a key player in intervention services and pressure control business.
Following completion of the transaction, a new product service line within Halliburton will be created to include Halliburton’s existing coiled tubing and hydraulic workover operations and Boots & Coots’ intervention services and pressure control business.
Boots & Coots’ management will be retained to lead Halliburton’s Boots & Coots product service line with operating results reported through Halliburton’s 'Completion and Production' reporting segment.
Halliburton expects the acquisition to be accretive in the first full year of operation, said a top official.
Marc Edwards, Halliburton’s senior vice president of Completion and Production, said, “Optimizing economic production levels in both mature assets and unconventional gas resources requires increasing levels of pressure control and well intervention.
'The combination of Halliburton’s global hydraulic workover and coiled tubing deployed technologies, together with Boots & Coots’ well intervention and pressure control services will help us improve full life cycle returns for our customers,' he remarked.
'This is a natural addition to Halliburton’s extensive completion and production enhancement portfolio, further enabling integrated project workflows with improved reservoir recoveries,' he added.
Under the merger agreement, Boots & Coots stockholders will receive $3 per share for each share of Boots & Coots common stock they hold, comprised of $1.73 in cash and $1.27 in Halliburton common stock, subject to election, proration features and an exchange ratio based on Halliburton’s five-day average share price prior to closing as further described in the merger agreement.
The boards of directors of both Halliburton and Boots & Coots have approved the transaction, which is expected to close in the summer of 2010, subject to regulatory approvals, approval by Boots & Coots’ stockholders and other conditions.
“Halliburton’s legacy of innovation coupled with its integrated service capability complement Boots & Coots’ focus on delivering a complete portfolio of pressure control and well intervention services,” said Jerry Winchester, Boots & Coots president and CEO.
“Combining the resources of both companies creates the premier intervention company across the globe,” he added.-TradeArabia News Service