Case Studies


Sale of Layne Christensen to Granite Construction

TRANSACTION OVERVIEW

  • On June 14, 2018, Layne Christensen (NASDAQ:LAYN) was acquired by Granite Construction (NYSE:GVA) in an all-stock transaction valued at approximately $536mm, including the assumption of net debt

LAYNE CHRISTENSEN OVERVIEW

  • Layne is a global water management, infrastructure services and drilling company, providing responsible solutions to the world of essential natural resources: water, minerals and energy
  • Layne offers innovative, sustainable products and services with an enduring commitment to safety, excellence and integrity

GRANITE CONSTRUCTION OVERVIEW

  • Granite is one of the nation’s largest infrastructure contractors and construction materials producers
  • Granite specializes in complex infrastructure projects, including transportation, industrial and federal contracting, and is a proven leader in alternative procurement project delivery

GREENTECH’S ROLE

  • Greentech served as the exclusive financial advisor to Layne and was closely involved in all aspects of the transaction
  • Greentech evaluated a variety of potential strategic alternatives, including standalone scenarios, transformational growth acquisitions, divestitures of non-core business segments, capital structure considerations, and a whole company sale
  • Alongside accounting and legal advisors, Greentech conducted an extensive reverse due diligence process on Granite and its equity offer, including analyzing historical and projected financials, Wall Street analyst messaging and guidance, accounting treatments, contracts, and other items

WHAT THE TRANSACTION MEANS FOR THE WATER INFRASTRUCTURE SECTOR

  • As a leading water management, construction and drilling company with the #1 position in water well drilling and a #2 position in cured-in-place pipe (CIPP) rehabilitation, Layne significantly enhances Granite’s presence in the large and growing water infrastructure market
  • A combination with Layne represents the next logical step in the evolution of Granite’s strategy to diversify its service offerings by expanding in the water and wastewater market. Since acquiring Kenny Construction Company in December 2012, which marked Granite’s entrance into the water markets, Granite has made a number of investments in the water sector to strengthen its capabilities, expand its footprint and grow its presence. Now, with the addition of Layne’s leading portfolio of services, Granite will be better positioned in the water infrastructure and wastewater rehabilitation space

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