Boots & Coots Merges with HAL - Analyst Blog

Halliburton Co. (HAL) – one of the largest oilfield service providers in the world – has closed its previously announced acquisition of well-intervention firm Boots & Coots Inc. in a stock and cash deal.
 
Per the final agreement, Boots & Coots shareholders got $1.72 in cash and $1.28 in Halliburton stock for each share they hold, thereby representing a combined price of $3.00. The cash component of the deal was worth about $142.5 million, while equity contribution was obtained through the issuance of approximately 3.4 million Halliburton shares.
 
Houston-based firefighting company Boots & Coots has been associated with putting out some of the world's biggest oilfield fires. It specializes in providing pressure control services for oil and gas wells and employs about 700 people.
 
Post merger, Boots & Coots has become part of Halliburton's new product-service line that will combine its existing coiled tubing and hydraulic workover operations with Boots & Coots' well intervention services and pressure-control business.
 
The acquisition will allow Halliburton, the world's second-largest oil services firm after Schlumberger Ltd. (SLB), to offer a more complete portfolio of offerings to its clients by adding equipment and services to fight oil-well fires. The combined entity will be able to provide a complete array of intervention services across the globe.
 
Halliburton retained Boots & Coots' management to lead the new division (whose operating results will be reported through Halliburton's Completion and Production reporting segment) and kept the iconic Boots & Coots name. The company expects the deal to be accretive in the first full year of operation.
 
Houston, Texas-based Halliburton offers a variety of equipment, maintenance, and engineering and construction services to the energy, industrial, and government sectors.
 
Halliburton currently retains a Zacks #1 Rank (short-term 'Strong Buy' rating).

 
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