Layne Christensen Announces Completion Of Reynolds, Inc. Acquisition

Mission Woods, KS — Layne Christensen Company announced today it has closed the acquisition of Reynolds, Inc. ("Reynolds"). 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 ended 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 Company 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, has been named a Senior Vice President of Layne Christensen and was elected to Layne Christensen's board of directors.

SOURCE: Layne Christensen