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MISSION WOODS, KS -- Layne Christensen Company announced today it has signed a non-binding Letter of Intent to purchase 100% of the outstanding stock of American Water's Underground Infrastructure Group (UIG), a major provider of cured in place pipe (CIPP) services for sewer line rehabilitation in the United States.
The Letter of Intent sets forth certain conditions including the signing of a definitive agreement. The transaction is expected to close no later than November 15, 2006.
Jeff Reynolds, Executive Vice President of Layne Christensen Company, stated, "UIG represents a significant opportunity for us to increase our share of the CIPP service market which we expect will continue to experience rapid growth as sewer pipe infrastructure is repaired. They have an excellent reputation in the industry and we are very fortunate to have them join forces with us. The acquisition in combination with Reynolds' Inliner business would firmly establish Layne as the number two CIPP competitor in the U.S. market."
Andrew B. Schmitt, President and CEO of Layne Christensen Company, stated, "We really like the CIPP market. Where applicable, this process offers an effective and economic alternative to sewer pipe replacement. With the U.S. facing enormous sewer pipe integrity problems, we believe this product line will be an important growth engine for many years."
Layne Christensen Company provides sophisticated services and related products for the water, mineral, construction and energy markets.
Web site: www.laynechristensen.com
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