Halliburton, the world's second-largest oil field services company behind Schlumberger, yesterday said it would acquire oil and gas well fire control company Boots & Coots, in a stock and cash deal worth about $240 million.
Houston, Texas-based Halliburton said that Boots & Coots stockholders will receive $3.00 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.
Founded in 1978 and also based in Houston, Boots & Coots provides integrated pressure control services to onshore and offshore oil and gas exploration companies around the world. Its products and services include well intervention services designed to enhance production for oil and gas operators and its services consist primarily of hydraulic workover and snubbing services.
Boots & Coots' equipment services segment provides high pressure, high temperature rental tools. The company's pressure control services are designed to reduce the number and severity of critical events such as oil and gas well fires, blowouts or other incidences due to loss of control at the well.
Boots & Coots had extinguished about one third of the more than 700 oil well fires set by retreating Iraqi soldiers in Kuwait during the infamous Gulf War. In 2007, it diversified from emergency response services to well intervention services, which now generates a majority of its revenue.
Following completion of the transaction, Halliburton will create a new product service line to include Halliburton's existing coiled tubing and hydraulic workover operations and Boots & Coots' intervention services and pressure control business.
Halliburton will retain Boots & Coots' management to run the business after it has been integrated as Halliburton Boots & Coots product line.
Marc Edwards, Halliburton's senior vice president of completion and production, said, "Optimising 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."
"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.