Layne Christensen (LAYN) Acquires Balance of Costa Fortuna for $16.15M
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Layne Christensen Company (Nasdaq: LAYN) has acquired the remaining 50% interest of Costa Fortuna Fundacoes e Construcoes Ltda ("Costa Fortuna") that it did not previously own. Layne acquired its initial 50% interest in Costa Fortuna in July 2010.
For calendar year 2011, Costa Fortuna had revenues of $49.5 million, net income of $7.8 million, and EBITDA of $13.9 million. Layne will recognize 100% of Costa Fortuna's revenues and profits beginning in the second quarter ending July 31, 2012. Costa Fortuna's backlog at April 30, 2012 was $55 million.
Total consideration paid by Layne for the remaining 50% interest was $16.15 million, bringing Layne's total investment in Costa Fortuna to $32.3 million for a 100% interest, plus the assumption of $9 million in debt. The value of the acquisition is approximately three times EBITDA. Escrow of $2.4 million will be held for two years.
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For calendar year 2011, Costa Fortuna had revenues of $49.5 million, net income of $7.8 million, and EBITDA of $13.9 million. Layne will recognize 100% of Costa Fortuna's revenues and profits beginning in the second quarter ending July 31, 2012. Costa Fortuna's backlog at April 30, 2012 was $55 million.
Total consideration paid by Layne for the remaining 50% interest was $16.15 million, bringing Layne's total investment in Costa Fortuna to $32.3 million for a 100% interest, plus the assumption of $9 million in debt. The value of the acquisition is approximately three times EBITDA. Escrow of $2.4 million will be held for two years.
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