Layne Christensen Co. (LAYN) announced that on October 1, 2012 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 $15 million.
Layne said it intends to use the proceeds from this transaction to pay down outstanding debt and for general corporate purposes.
Layne noted that it reclassified its Energy Division as a discontinued operation and recorded a non-cash, after-tax charge of $20.0 million to write down the carrying value of these assets to the expected selling price, less costs to sell. Layne said it does not expect to record any additional material charges associated with this transaction.
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