THE WOODLANDS, Texas,
May 1, 2017 /PRNewswire/
-- Layne Christensen Company (NASDAQ: LAYN) ("Layne" or
the "Company") today announced the closing of the previously
disclosed sale of its Heavy Civil business to a newly-formed entity
owned by private investors, including members of the current Heavy
Civil senior management team, for $10.1
million before an estimated negative working capital
adjustment of approximately $4.3
million related to a reduction in working capital since
entering into the asset purchase agreement in February. Net
cash proceeds to Layne are expected to be approximately
$4.8 million after the working
capital adjustment and transaction costs associated with the
sale. The transaction will result in a book loss in the first
quarter of fiscal 2018. The net book value of the Heavy Civil
business at the transaction closing date is estimated to be
approximately $23 million. Layne
expects to use the net proceeds from the sale for general corporate
purposes and growth opportunities in its core businesses.
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 and will enable
us to concentrate on growing our core water infrastructure
businesses, while reducing our overall risk exposure to large
construction projects."
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