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Layne Christensen completes $112M purchase of Reynolds

By RANDOLPH HEASTER

The Kansas City Star


Layne Christensen Co. on Friday said it had completed the $112.2 million acquisition of Reynolds Inc., a move that nearly doubles the size of its water division.

Layne Christensen, based in Mission Woods, said it paid $60 million in cash and 2.2 million shares of its common stock at $23.48 a share for Reynolds. The purchase price could increase by as much as $15 million if Reynolds, based in Orleans, Ind., achieves certain incentives over the next three years.

Jeff Reynolds, the acquired firm’s president and chief executive, was named senior vice president at Layne Christensen and was elected to the board of directors.

Reynolds has 800 employees and reported 2004 revenues of $177 million. Layne Christensen’s water resources division had sales in the last fiscal year of about $200 million, with 1,000 employees.

“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,” Andrew B. Schmitt, Layne’s president and chief executive, said in a news release. “We anticipate excellent growth prospects in these business lines.”

In addition to its water business, Layne Christensen also provides products and services in the mineral exploration, construction and energy markets.