MISSION WOODS, Kan., Nov. 3, 2009 (GLOBE NEWSWIRE) -- Layne Christensen Company (Nasdaq:LAYN) today announced the acquisition of W.L. Hailey & Company, Inc., a water infrastructure company. Morgan Joseph & Co. Inc. provided investment banking services to W.L. Hailey and served as exclusive sell-side financial advisor to the company in connection with this transaction. The acquisition purchase price was $15 million and was funded from Layne Christensen's current cash balances and net of cash, Layne Christensen remains debt free.
W.L. Hailey, founded in 1925 in Nashville, Tennessee, is a leading provider of water and wastewater infrastructure solutions in the Southeast and is ranked among the largest environmental construction firms in the U.S. W.L. Hailey adds to the list of acquisitions made recently to expand Layne Christensen's geographic coverage in its water infrastructure business. W.L. Hailey will be added to Layne's heavy/civil construction arm with approximately $80 million and $5 million in trailing twelve month revenues and earnings before interest and taxes, respectively. The acquisition is expected to be accretive to earnings after all acquisition adjustments. W.L. Hailey builds water and wastewater treatment facilities and systems, builds and installs water and sewer mains and has marine construction capabilities.
Jeff Reynolds, President of Layne's Water Infrastructure Group, stated, "This acquisition further solidifies our efforts in the Southeast water markets. The 'bolt-on' acquisition strategy we have used to expand the company's footprint in water infrastructure continues to pay dividends. We welcome the W.L. Hailey team."
Don Ackerman, President and CEO of W. L. Hailey, said, "The management team at W.L. Hailey is excited to be part of the larger water infrastructure services group inside Layne Christensen Company. With the support and resources of Layne Christensen, we will be able to accelerate our growth in the water challenged Southeast markets."
Layne Christensen's Water Infrastructure Division includes:
* Water Resources Group providing single source, full service capabilities with expertise in geosciences, well drilling, pumping and water treatment. * Heavy/Civil Construction Group (Reynolds, Inc.), providing design and construction services for treatment plants, pump stations and pipelines. * Pipeline Rehabilitation Group (Reynolds Inliner), an industry leader in cured-in-place pipeline renewal, offering municipal and industrial customers a safe, cost-effective and long-term pipeline rehabilitation solution. * Geoconstruction Group, offering a wide array of soil stabilization services including jet grouting, drilled micro-piles, vibratory ground improvement and construction anchor technologies.
With over 50 offices strategically located across the country, Layne Christensen is uniquely positioned to offer comprehensive, integrated solutions to solve the most demanding needs of our customers. Layne Christensen Company provides sophisticated services and related products for the water, wastewater, mineral and energy markets.
The Layne Christensen Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3466
About Morgan Joseph & Co. Inc.
Morgan Joseph & Co. Inc. (www.morganjoseph.com) is a full-service investment banking firm serving middle market companies. The firm's primary focus is on providing financial advisory and capital raising services, including mergers and acquisitions services and equity and debt private placements and public offerings. In addition, Morgan Joseph provides research and trading services for institutional clients.
This press release contains 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. 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 risks and uncertainties normally incident to the construction industry and to the exploration for and development and production of oil and gas, 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 release, 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.