Layne Christensen Co., Mission Woods, Kan., has acquired
the remaining 50 percent interest of Costa Fortuna (Layne acquired its initial
50 percent interest in July 2010).
Costa Fortuna, with operations in Sao Paulo, Brazil, and Montevideo,
Uruguay, is part of Layne's Geoconstruction Group, and is one of the largest
providers of specialty foundation and specialized marine geotechnical services
in South America. Costa Fortuna specializes in the implementation of
large-diameter bored piles, diaphragm walls, root piles, soil nailing, jet
grouting, investigatory geotechnical services, and maritime and river
specialized foundations.
Total consideration paid by Layne for the remaining 50 percent interest was
$16.15 million, bringing Layne's total investment in Costa Fortuna to $32.3
million, plus the assumption of $9 million in debt.
Layne CEO, Rene Robichaud, states, "Costa
Fortuna has been a strong performer, and we believe that there is a significant
opportunity to expand Layne's geotechnical construction capabilities in South
America over the next several years. The Brazilian construction market is
estimated at well over $100 billion for the next five years, with a substantial
portion expected in market opportunities generated by the World Cup in
2014, and the Olympic Games in 2016. As a market leader in South America,
Costa Fortuna enjoys established construction industry partnerships, a track
record of successfully completing specialized, complex projects, and a
reputation for integrity and dependability. It will fit nicely as we apply the
principles of OneLayne to pursue solutions-based project opportunities across
all divisions and geographies."
South American Expansion Update
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