Significant upside potential of the combined company
“The transaction will combine the companies’ product and service capabilities to deliver an unsurpassed depth and breadth of solutions to our customers, creating a Houston-based global oilfield services champion, manufacturing and exporting technologies, and creating jobs and servicing customers around the globe,” said Dave Lesar, chairman and CEO of Halliburton.
Under the terms of the agreement, Baker Hughes stockholders will receive a fixed exchange ratio of 1.12 Halliburton shares for each Baker Hughes share plus $19 in cash. Halliburton intends to finance the cash portion of the acquisition through a combination of cash on hand and fully committed debt financing, the company said.
“I’m most excited about bringing together some of the best talent in the industry and I am confident that uniting our great people will be a competitive advantage for our combined organization,” Lesar said. “Between growth and attrition, Halliburton alone is looking to add 21,000 people in 2014.”
The combined company will maintain the Halliburton name and will be headquartered in Houston. Lesar will continue as chairman and CEO of the combined company. The combined company’s board of directors is expected to expand to 15 members, three of whom will come from the board of Baker Hughes.
“The stockholders of Baker Hughes will immediately receive a substantial premium and have the opportunity to participate in the significant upside potential of the combined company,” said Lesar. “Our stockholders know our management team and how we live up to our commitments, we know how to create value, how to execute, and how to integrate in order to make this combination successful.”