Layne Christensen announced that on Oct. 1 it sold all of the exploration and production, or E&P, assets of its Energy Division to LR Energy, Inc., a portfolio company of Longroad Capital Partners III, L.P., for $15M. Layne intends to use the proceeds from this transaction to pay down outstanding debt and for general corporate purposes. As reflected in the consolidated financial statements of Q2 ended July 31, Layne reclassified its Energy Division as a discontinued operation and recorded a non-cash, after-tax charge of $20M 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.
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