THE WOODLANDS, Texas,
Aug. 18, 2015 /PRNewswire/
-- Layne Christensen (NASDAQ: LAYN) ("Layne" or the "Company")
today announced the closing of the previously announced sale of its
Geoconstruction business segment to a subsidiary of Keller
Foundations, LLC, a member of Keller Group plc ("Keller") for a total of $43 million,
including the preliminary value of the business segment's working
capital which is subject to a post-closing reconciliation.
Approximately $6.0 million of the
purchase price will remain in escrow or will be paid at a later
date upon the satisfaction of certain conditions. As previously
announced, Layne will share in the profit or loss for one of the
contracts being assumed by Keller,
which could increase the purchase price by up to $5 million, or decrease it by up to $1.5 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, Layne's
President and CEO, commented, "We are pleased to have closed this
transaction as it furthers our strategy to reshape our operating
portfolio and focus on Layne's core competencies. Our detailed
review of all aspects of our portfolio and our operations,
including our cost structure, continues in order to unlock value
for our shareholders."
Layne Christensen Company
Layne is a global water management, construction and drilling
company, providing responsible solutions 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.
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," "intended," "continue," "believe," "may," "hope,"
"anticipate," "goal," "forecast," "plan," "estimate" and similar
words or phrases. Our actual results and performance may
materially and adversely differ from those contemplated by the
forward-looking statements in this press release for many reasons,
many of which are beyond our control, including, but not limited
to, assumptions regarding the markets in which we operate, the
results for the assumed contract for which we are sharing in the
profit or loss, any post-closing revisions to the estimated closing
date working capital of the Geoconstruction business segment and
the ability of Layne to execute on its business strategy, including
our ability to consummate acquisitions related to our core
businesses at attractive prices. In addition, our business in
general is subject to certain risks, uncertainties and assumptions,
including, but not limited to, the following: 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 to be
incorrect, actual results may vary materially and adversely from
those anticipated, estimated or projected. Please read the
risk factors described in detail in the Company's Annual Report on
Form 10-K and Quarterly Report on Form 10-Q as filed with the U.S.
Securities and Exchange Commission on April
14, 2015 and June 9, 2015,
respectively, for additional information regarding these
risks. These forward-looking statements are made as of the
date of this press release, and except as may be required by law,
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.
Contacts
Layne Christensen Company
Michael J. Caliel
President & CEO
281-475-2690
michael.caliel@layne.com
Michael Anderson
Chief Financial Officer
281-475-2670
michael.anderson@layne.com
Dennard Lascar Associates
Ken Dennard/Jack Lascar
713-529-6600
ken@dennardlascar.com
jlascar@dennardlascar.com
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SOURCE Layne Christensen Company