Layne Sells Upstream Assets

Sale of upstream assets to private equity co., LR Energy Inc. for $15 million.

Layne Christensen Co. (Nasdaq: LAYN) has sold its upstream assets of its energy division to LR Energy Inc. for $15 million.

Rene Robichaud, Layne chief executive, said, "This transaction reflects our strategy to transform Layne into a leading sustainable solutions provider to the world of essential natural resources -- water, mineral, and energy. Although we are exiting the energy production business, we do intend, as previously communicated, to be in the oil and gas services business for the foreseeable future.”

“We see a significant opportunity to build a total water management solutions business under the Layne Energy Services banner that sustainably addresses the critical water issues challenging the E&P industry. We plan to develop this business into a $200 million revenue enterprise over the next 3-5 years."

Layne reclassified its energy division as a discontinued operation and recorded a non-cash, after-tax charge of
$20.0 million to write down the carrying value of these assets to the expected selling price, less costs to sell. Layne does not expect to record any additional material charges associated with this
transaction.

LR Energy Inc. is a portfolio company of private equity firm Longroad Capital Partners LLL LP. Layne is a global solutions provider to the world of essential natural resources -- water, mineral and energy.