The acquisition was financed through an expansion of Layne Christensen's revolving credit facility with LaSalle Bank National Association

Mission Woods, Kan. - Business Wire - infoZine - Layne Christensen Company (NASDAQ:LAYN) announced it has closed the acquisition 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. UIG had revenues of approximately $47.4 million and earnings before interest, income taxes, depreciation and amortization (EBITDA) of approximately $5.6 million for the trailing 12 months ended June 30, 2006. The purchase price for UIG was $28.6 million, subject to a post-closing minimum tangible net worth adjustment. Layne Christensen anticipates the acquisition will be marginally accretive to earnings beginning in Fiscal 2008.

Jeff Reynolds, Executive Vice President of Layne Christensen Company, stated, "We are very excited and proud to have UIG be a part of our family of companies. Mark Harris, president of UIG, and his team have an excellent track record and have positioned UIG for continued growth in the CIPP market for sewer line rehabilitation in the United States."

The acquisition was financed through an expansion of Layne Christensen's revolving credit facility with LaSalle Bank National Association, as Administrative Agent, and a group of additional banks. The facility totals $200 million in credit capacity and provides for interest at variable rates equal to, at the Company's option, a LIBOR rate plus 0.75% to 2.00% per annum or a base rate, as defined in the facility, plus up to 0.50% per annum, depending upon the Company's leverage ratio. The credit facility is unsecured.