e425
Filed by Halliburton Company
Pursuant to Rule 425 of the Securities Act of 1933, as amended, and
deemed filed pursuant to Rule 14a-6(j) of the Securities Exchange Act of 1934, as amended
Registration No.: 333-166656
Subject Company: Boots & Coots, Inc. (File No: 1-13817)
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TO:
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Boots & Coots Management
Halliburton Management for Well Intervention and PPS |
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FROM:
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Marc Edwards, senior vice
president, Halliburton Completion and Production division
Jerry Winchester, president and CEO, Boots & Coots |
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DATE:
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August 16, 2010 |
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SUBJECT:
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Developing the Boots & Coots Product Service Line |
As previously announced, Halliburton has entered into a definitive merger agreement to acquire
Boots & Coots. In doing so, Halliburton plans to separate its Well Intervention (Coiled Tubing and
Hydraulic Workover) and Pipeline and Process Services business from its Production Enhancement
product service line (PSL) and combine it with Boots & Coots current business to form a new PSL.
The new PSL will operate as the Boots & Coots PSL within Halliburtons Completion and Production
division and will employ approximately 3,000 people worldwide.
Pending Boots & Coots stockholder approval and customary closing conditions, we expect to launch
the Boots & Coots PSL in September. This memorandum will help you better understand the planned
business model and leadership team who will drive these efforts.
The Boots & Coots PSL plans to adopt a business delivery model that will allow the Boots & Coots
PSL to continue its proven practice of moving assets and teams continuously across geographic
boundaries in response to client emergencies or project-based deployments. As a result, the
geographic presence may be intermittent and the country/district may not necessarily have the
momentum to support a country/district management PSL structure that is seen typically across
Halliburton.
The Boots & Coots PSL delivery model will consist of two primary functions: Global Business
Management and Global Operations. Each function will be responsible for HSE performance, employee
development and personnel succession planning.
The Global Business Management organization will be accountable for the following:
Market planning and opportunity assessment, customer relations and sales development,
bids/contracts, and regional profitability.
The Global Operations organization will be accountable for the following:
Operations, pricing authority for discounts, asset allocation, PSL profitability,
utilization, service quality, and scope of work/technical support.
Therefore, the business model will be centralized and the PSL will be responsible for leading
technology, product management, business management and operations for all service lines to include
Coiled Tubing,
Hydraulic Workover, Response/Risk Management Services, Equipment Services (Rental Equipment),
Safeguard, Process Pipeline Services and International Nitrogen. The Wellnite JV will remain under
Halliburtons Production Enhancement PSL.
The interface between a region and the Boots & Coots PSL will occur through a Houston-based point
of contact. For example, for Boots & Coots PSL issues that pertain specifically to region
operations, the Region Vice President will interact with the Boots & Coots PSL Global Business
Manager. We believe that this structure best positions the Boots & Coots PSL for optimal success
from the onset of operations.
The following is a simple diagram explaining the reporting structure to the Global Business Manager
and how several key roles work together.
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The Boots & Coots PSL management team will continue to be based primarily in Houston and
will report to Dee Edwards, senior director of Global Operations for the PSL. Edwards will
report to Jerry Winchester, the Boots & Coots PSL vice president. |
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The Global Business Manager will have a matrix report into the Halliburton region vice
presidents. |
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Deployed on an as-needed basis, Boots & Coots PSL region managers will have a matrix
reporting relationship to the Global Business Manager. |
PSL Management Team
The Boots & Coots PSL management team will be:
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Global Business Manager
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Allen Duke |
Global Manager PPS
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Steve Arrington |
Global Manager HWO Snubbing
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Mike Marshall |
Global Manager RMS
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Bill Markus |
Global Manager Equipment Services
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Mike Clark |
Global Manager Safeguard
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Kelly Hebert |
Global Manager Coil Tubing
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Jerry Wilke |
NOTE: The statements in this document that are not historical statements, including statements
regarding the acquisition of and future plans with respect to Boots & Coots, whether and when the
acquisition will be completed and the success of the Boots & Coots PSL, are forward-looking
statements within the meaning of the federal securities laws. These statements are subject to
numerous risks and uncertainties, many of which are beyond the control of Halliburton and Boots &
Coots, which could cause actual results to differ materially from the results expressed or implied
by the statements. These risks and uncertainties include, but are not limited to: failure to
receive the approval of Boots & Coots stockholders; satisfaction of the other conditions to the
closing of the acquisition; results of litigation and investigations; actions by third parties,
including governmental agencies; changes in the demand for or price of oil and/or natural gas which
has been significantly impacted by the worldwide recession and by the worldwide
financial and credit crisis; consequences of audits and investigations by domestic and foreign
government agencies and legislative bodies and related publicity, potential adverse proceedings by
such agencies; indemnification and insurance matters; protection of intellectual property rights;
compliance with environmental laws; changes in government regulations and regulatory requirements,
particularly those related to offshore oil and gas exploration, radioactive sources, explosives,
chemicals, hydraulic fracturing services and climate-related initiatives; compliance with laws
related to income taxes and assumptions regarding the generation of future taxable income; risks of
international operations, including risks relating to unsettled political conditions, war, the
effects of terrorism, foreign operations, and foreign exchange rates and controls, and doing
business with national oil companies; weather-related issues, including the effects of hurricanes
and tropical storms; changes in capital spending by customers; delays or failures by customers to
make payments owed to us; execution of long-term, fixed-price contracts; impairment of oil and gas
properties; structural changes in the oil and natural gas industry; maintaining a highly skilled
workforce; availability of raw materials; and integration of acquired businesses and operations of
joint ventures. Halliburtons Form 10-K for the year ended December 31, 2009, Form 10-Qs for the
quarters ended March 31, 2010 and June 30, 2010, recent Current Reports on Form 8-K, and other
Securities and Exchange Commission (SEC) filings, as well as Boots & Coots Form 10-K for the year
ended December 31, 2009, as amended, Form 10-Qs for the quarters ended March 31, 2010 and June 30,
2010, recent Current Reports on Form 8-K, and other SEC filings, discuss some of the important risk
factors identified that may affect Halliburtons and Boots & Coots business, results of
operations, and financial condition. Neither Halliburton nor Boots & Coots undertake any obligation
to revise or update publicly any forward-looking statements for any reason.
Additional Information
In connection with Halliburtons proposed acquisition of Boots & Coots, Halliburton has filed with
the SEC a registration statement on Form S-4 containing a prospectus of Halliburton and a proxy
statement of Boots & Coots and other documents related to the proposed transaction. The
registration statement has been declared effective by the SEC. Boots & Coots filed the definitive
proxy statement/prospectus with the SEC on August 11, 2010, and the proxy statement/prospectus was
mailed to Boots & Coots stockholders on August 13, 2010. INVESTORS AND SECURITY HOLDERS ARE URGED
TO CAREFULLY READ THE REGISTRATION STATEMENT, THE DEFINITIVE PROXY STATEMENT/PROSPECTUS AND ANY
OTHER MATERIALS REGARDING THE PROPOSED MERGER BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT
HALLIBURTON, BOOTS & COOTS AND THE PROPOSED TRANSACTION. Investors and security holders may obtain
a free copy of the registration statement, the definitive proxy statement/prospectus and other
documents containing information about Halliburton and Boots & Coots, without charge, at the SECs
web site at www.sec.gov. Copies of Halliburtons SEC filings may also be obtained for free by
directing a request to investors@halliburton.com (Halliburton; 1-281-871-2688). Copies of the Boots
& Coots SEC filings may also be obtained for free by directing a request to
investorrelations@boots-coots.com (Boots & Coots; 1-281-931-8884).
Participants in Solicitation
Halliburton and Boots & Coots and their respective directors and executive officers may be deemed
to be participants in the solicitation of proxies from Boots & Coots stockholders in respect of
the merger. Information about these persons can be found in Halliburtons proxy statement relating
to its 2010 Annual Meeting of Stockholders, as filed with the SEC on April 5, 2010, Boots & Coots
Annual Report on Form 10-K/A, as filed with the SEC on April 30, 2010, and Boots & Coots Current
Report on Form 8-K, as filed with the SEC on March 5, 2010. These documents can be obtained free of
charge from the sources indicated above. Additional information about the interests of such persons
in the solicitation of proxies in respect of the merger are included in the registration statement
and will be included in the definitive proxy statement/prospectus to be filed with the SEC in
connection with the proposed transaction.