August Merger Update
From
CEO, Robert
Drummond
Team,
Since C&J and Keane agreed to merge
in June, I have enjoyed the opportunity to speak with many of you about the transaction. Your response to combining these two great companies has been very positive and I appreciate the great attitude. The feedback from customers has also been
overwhelmingly positive and validates the tremendous future we envision for the combined company. Further to our commitment to maintaining regular communications between signing and close, I wanted to give you a brief recap of where we are in the
integration planning process and what you should expect moving forward.
The transaction has received antitrust clearance from the Federal Trade
Commission and we are on schedule with the disclosure process required by the Securities and Exchange Commission. These steps bring us closer to completing the transaction, which we continue to expect will occur in late October. By that time,
we will formally announce the combined companys name, ticker symbol and logo.
Since June, the Integration Leadership Team (ILT), consisting of Don
Gawick, CEO of C&J, JK van Gaalen, CFO of C&J, Greg Powell, President and CFO of Keane and me, has been getting to know the ins and outs of how both companies operate and we have now moved into the organizational planning phase of the
integration process. In this phase, our focus is on developing the organizational structure of each department, the plan for running combined operations (including in Year One) and the policies and procedures under which the combined company
will operate.
We expect the organizational planning phase to be completed by late September, at which point we will formally announce the full go-forward organizational structure. At the highest level, this will contain features familiar to both companies:
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Operations Management will be organized geographically and will work in collaborative partnership with Product
Line Leadership as a cohesive service delivery team focused on providing value for our customers.
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The Operations and Product Line teams will be supported by strong Operations Shared Services including QHSE,
Maintenance, and Supply Chain.
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We will align support functions to provide quality and efficient support to the new organization, including
Finance, IT, HR, and Legal.
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A commercial organization will lead strategic sales, marketing and other commercial activities.
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We will continue to invest in our Technology focused organization, including Engineering, Manufacturing and other
initiatives such as digital, surface, and downhole technologies.
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Once each functional teams organizations are finalized, we will
be reviewing each companys talent pool to determine placement within the organizational structure. We will follow a rigorous process, supported by HR, to ensure we consider candidates from across both companies to build the best team possible
and position the combined company for success. As we communicated when we announced the transaction, we expect employees of both C&J and Keane to contribute and benefit from growth and new career development opportunities that result from being
part of a larger and stronger organization. Decisions concerning placement will begin in late September and will extend past Day 1, and we will keep you updated as we move forward. Rest assured that we are committed to being fair as we determine
talent placement within the new organizational structure.
In closing, I want to remind you that until the transaction closes, Keane and C&J continue
to operate as separate companies, and we must all remain focused on delivering the exceptional service and safety performance our customers and employees have come to expect.
I want to thank all of you for your hard work, support and dedication as we move toward the finish line.
You are the most important factor in the success of our new company, and with the combined talents of our two outstanding teams, Im confident that our
future will be bright.
Regards,
Robert Drummond
Chief Executive Officer