Layne Christensen Acquires Bencor

November 18, 2010

Layne Christensen Co. announced the acquisition of Bencor Corporation of America. Founded in 1969, Bencor is one of North America's leading contractors in foundation and underground engineering. Bencor specializes in deep foundations for dams, levees, shafts and below ground structures and also excels in the design and building of earth support retention systems for basement excavation for high-rise structures, subway lines and stations and depressed highways. Bencor has performed work in the United States, Canada, South America, Europe and North Africa and has over 100 permanent employees headquartered in Dallas, Texas.

The purchase price for the stock of Bencor was $32.1 million. Management projects first year revenues and earnings per share of approximately $50 million and $0.20-$0.25 per share, respectively, after purchase accounting adjustments.

Peter Iovino, Layne GeoConstruction Division President, said, "The GeoConstruction Division in the past few years has focused on larger projects like dam/levee rehabilitation work. Most of these projects are quite large and require the construction of both cementitious grout curtains and deep slurry walls within bedrock. In the United States, there are just a few companies capable of performing the slurry wall part of the remediation work, and Bencor is a recognized leader in that technology. Bencor with its size, structure and technical expertise, represents an excellent and strategic opportunity to substantially increase, complement and solidify our Division's specialty work capabilities.

"Bencor, together with the acquisition of our 50-percent interest in Costa Fortuna in Latin America, will put the GeoConstruction Division at the top of the list of specialty foundation leaders in the world and will open doors to larger and more profitable projects."