Keller Regulatory News (KLR)

For immediate release Thursday 21 May 2015 Keller Group plc ("Keller" or "the Group") Acquisition of GeoConstruction Group, North America Keller, the international ground engineering specialist, announces that it hasagreed to purchase the net assets of the GeoConstruction group ("Bencor") ofLayne Christensen Company (NASDAQ: LAYN) for a consideration of around US$40m(£26m). The business is headquartered in Dallas and operates throughout NorthAmerica. The exact consideration, to be paid in cash from Keller's existingfacilities, will depend on the level of working capital inherited on closing. Bencor's traditional product offering is diaphragm walls ("D-walls"), a productmost often used in major infrastructure projects and which to date Keller hasonly been able to offer customers on a limited basis and in certaingeographies. The acquisition will therefore strengthen Keller's product rangeand its ability to offer complete packaged solutions both in North America andelsewhere. The business will form part of the Group's North America Division. D-wall projects tend to be large and Bencor has historically worked on lessthan 10 projects a year. As a result, the size and timing of contracts has aneffect on annual revenues, which are typically between $50m to $80m a year. As part of the acquisition, Keller will take on the existing, highly regardedmanagement team and all 150 employees, as well as Bencor's ongoing constructioncontracts. It is anticipated that the order book at closing will be aroundUS$160m, of which about US$120m relates to the East Branch Dam Cutoff WallRehabilitation Project in Pennsylvania. This contract is scheduled to runthrough to the middle of 2018. The acquisition remains conditional on the assignment to Keller of Bencor'smajor ongoing construction contracts and completion is expected by the end ofJune 2015. Alain Michaelis, Chief Executive of Keller, said: "This important acquisition marks another milestone in our strategy ofextending our global leadership by expansion into new technologies. "The addition of Bencor's D-wall technology and equipment will allow us tofurther expand our global customer offer for complex projects." For further information, please contact: Keller Group plc www.keller.co.ukJames Hind, Finance Director 020 7616 7575 FinsburyGordon Simpson, Rowley Hudson 020 7251 3801 Notes to Editors: Keller is the world's largest independent ground engineering specialist,providing technically advanced and cost-effective foundation solutions to theconstruction industry. With annual revenue of around £1.6bn, Keller hasapproximately 9,000 staff world-wide. Keller is the clear market leader in the US and Australia; it has primepositions in most established European markets; and a strong profile in manydeveloping markets.