Mets Investor > Deals-finance

Granite buys Layne for US$376m

The mineral drilling business of Texas-based Layne Christensen (NASDAQ: LAYN) could be sold off by new owner Granite Construction (NYSE: GVA) as it focuses on Layne’s more core water and construction drilling activities, and works to eliminate the driller’s US$170 million convertible debt.

Staff reporter

Mets Investor > Deals-finance

Granite buys Layne for US$376m

The mineral drilling business of Texas-based Layne Christensen (NASDAQ: LAYN) could be sold off by new owner Granite Construction (NYSE: GVA) as it focuses on Layne’s more core water and construction drilling activities, and works to eliminate the driller’s US$170 million convertible debt.

Staff reporter

Granite buys Layne for US$376m

While Granite's strong balance sheet also gives Layne the financial strength it has lacked as an independent entity to grow mineral drilling revenues and profits as the sector rebounds from its recent protracted downturn, the $90-100 million-a-year business could also fetch a decent price in a turning market.