THE WOODLANDS, Texas,
Feb. 9, 2017 /PRNewswire/
-- Layne Christensen Company (NASDAQ: LAYN) ("Layne" or
the "Company") today announced that it has signed a definitive
agreement to sell substantially all of its Heavy Civil business to
a newly-formed entity owned by private investors, including members
of the current Heavy Civil senior management team. The sale
is the culmination of an extensive process to divest the
business.
The transaction, which is expected to close in approximately 90
days, is subject to certain customary terms and closing
conditions. The sale price for the Heavy Civil business is
approximately $10.1 million,
consisting of at least $6.4 million
in cash, with the remainder consisting of Layne common stock
currently owned by the investors. The Layne stock will be
valued based upon Layne's volume weighted average share price
during the 10 days prior to closing.
The Company currently estimates that the transaction will result
in a book loss in the first quarter of fiscal 2018. The net
book value of the Heavy Civil business being sold was approximately
$22.6 million as of October 31, 2016.
Michael J. Caliel, President and
Chief Executive Officer of Layne, commented, "The sale of our Heavy
Civil business is consistent with our previously-announced strategy
to simplify and restructure our operating portfolio. The
closing of this transaction enables us to focus on our core
water-related businesses and reduce our risk exposure to large
construction projects, while also positioning Layne to improve its
profitability in a growing water and water infrastructure
industry."
Stinson Leonard Street LLP acted as exclusive legal advisor, and
Houlihan Lokey acted as exclusive
financial advisor to Layne on this transaction.
Forward-Looking Statements
This press release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Exchange Act of 1934. Such statements may
include, but are not limited to, statements of plans and
objectives, statements of future economic performance and
statements of assumptions underlying such statements, and
statements of management's intentions, hopes, beliefs, expectations
or predictions of the future. Forward-looking statements can
often be identified by the use of forward-looking terminology, such
as "should," "intend," "continue," "believe," "may," "hope,"
"anticipate," "goal," "forecast," "plan," "estimate" and similar
words or phrases. Such statements are based on current expectations
and are subject to certain risks, uncertainties and assumptions,
including but not limited to: prevailing prices for various
commodities, unanticipated slowdowns in the Company's major
markets, the availability of credit, the risks and uncertainties
normally incident to the construction industry, the impact of
competition, the effectiveness of operational changes expected to
increase efficiency and productivity, worldwide economic and
political conditions and foreign currency fluctuations that may
affect worldwide results of operations. Should one or more of these
risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially and
adversely from those anticipated, estimated or
projected. These forward-looking statements are made as of the
date of this filing, and the Company assumes no obligation to
update such forward-looking statements or to update the reasons why
actual results could differ materially from those anticipated in
such forward-looking statements.
About Layne
Layne is a global solutions provider to the world of essential
natural resources—water, mineral and energy. We offer
innovative, sustainable products and services with an enduring
commitment to safety, excellence and integrity.
Contacts
J. Michael Anderson
Chief Financial Officer
281-475-2694
michael.anderson@layne.com
Dennard Lascar Associates
Jack Lascar
713-529-6600
jlascar@dennardlascar.com
[LAYN-F]
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SOURCE Layne Christensen Company