Layne Christensen Announces Completion of Reynolds, Inc. Acquisition
Layne Christensen Co. closed the acquisition of Reynolds, Inc. Founded in the mid-1930s, Reynolds, a privately held company, is a major supplier of products and services to the water and wastewater industries. Business lines include design/build water and wastewater treatment plants, water supply wells, Ranney collector wells, water intakes and transmission lines. In addition, Reynolds' Inliner Division is one of the largest providers of cured in place pipe (CIPP) services for sewer line rehabilitation in the United States. Reynolds had combined revenues of approximately $185 million and EBITDA of approximately $18 million for the trailing twelve months ending June 30, 2005. Backlog of future projects for Reynolds today stands at approximately $235 million.
The purchase price for Reynolds totaled $112.2 million, comprised of $60 million in cash and 2.2 million shares of Layne Christensen Co. common stock at a closing price of $23.48 per share. Reynolds will have incentives, which if achieved, could add an additional $15 million to the purchase price over the next three years. In addition, Jeff Reynolds, president, CEO and grandson of the company founder, was named a senior vice president of Layne Christensen and was elected to Layne Christensen's board of directors.
Andrew B. Schmitt, president and CEO of Layne Christensen Co., said, "We are very excited and proud to have Reynolds be a part of our family of companies. Jeff and his team have done a great job through the years positioning their businesses for substantial participation in the large future investments required in U.S. water and wastewater treatment infrastructure. As a result of this merger, we feel Layne Christensen has the most complete offering of products and services of any major company in the water and wastewater industry. We anticipate excellent growth prospects in these business lines."