Granite Construction Incorporated · NYSE:GVA
Granite Construction — Merger or Acquisition (February 2018)
16 slides from Granite Construction's merger presentation, Feb 14, 2018
Slide 1: Granite Construction to Acquire Layne Christensen: A Platform for Growth
GRANITE CONSTRUCTION TO ACQUIRE LAYNE CHRISTENSEN A PLATFORM FOR GROWTH FEBRUARY 2018 Exhibit 99.6
Slide 2: Forward Looking Statements
Forward Looking Statements All statements included or incorporated by reference in this communication, other than statements or characterizations of historical fact, are forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933,
Slide 3: Agenda
AGENDA TRANSACTION OVERVIEW COMPELLING STRATEGIC COMBINATION FINANCIAL BENEFITS CONCLUSION
Slide 4: Establishing a Platform for Growth
Delivering on the next logical step in Granite’s strategic plan and evolution Extends diversification efforts into growing water end market segments, leveraging prior investments Positions Granite as a national leader across both transportation and water infrastructure markets Poised to benefit from
Slide 5: Transaction Summary
TRANSACTION SUMMARY (1) Based on VWAP for Granite shares over the past 90 trading days. Calculation of actual value for Layne shareholders will be determined based on Granite’s share price on day of transaction close (2) Equity Value plus net debt (3) Based on Granite’s expectations for Layne’s fina
Slide 6: Attractive U.S. Water Service Industry Dynamics
Increased demand for large water infrastructure programs due to population growth and scarcity of water supply U.S. municipal utility sector forecasted capital expenditures of $532 billion through 2025(5) >50% expected to be related to water and wastewater distribution networks Chronic underinvestme
Slide 7: Layne at a Glance
LAYNE AT A GLANCE Leading water management, infrastructure services, and drilling company 130+ year history Approximately 2,200 employees 50+ offices Strong brand recognition #1 U.S. Water Well Drilling #2 U.S. Trenchless Pipeline Rehabilitation #3 Mineral Services Provider in the Americas 50,000+ W
Slide 8: Summary of Layne Business Lines
SUMMARY OF LAYNE BUSINESS LINES Inliner Water Resources Mineral Services Key Figures LTM Q3 ’18(6) REVENUE: $202M #2 U.S. Trenchless Rehabilitation Contractor REVENUE: $169M #1 U.S. Water Well and Pump Repair Company REVENUE: $94M #3 Mineral Services Driller Services Liner tube manufacturing Cured-i
Slide 9: Revenue by Segment
$3.3B(6,7) $2.9B(7) REVENUE BY SEGMENT (6) LTM figures as of Layne’s fiscal Q3 2018 (October 31, 2017) and pro forma for the divestiture of the Heavy Civil business segment; Layne’s fiscal year end is January 31 (7) LTM figures as of Granite’s fiscal Q3 2017 (September 30, 2017); Granite’s fiscal ye
Slide 10: Expanding Our National Footprint
EXPANDING OUR NATIONAL FOOTPRINT Granite Locations Layne Locations
Slide 11: Similar Cultures and Core Values
Expanded opportunities for employees as part of larger, stronger, and more diversified company Partnership unites two similar cultures and complementary organizations with proud history of leadership in their respective end markets Emphasizes core values focused on ethics, safety, sustainability, an
Slide 12: Substantial Financial Benefits
SUBSTANTIAL FINANCIAL BENEFITS Significant Cost Savings Expected annual run-rate synergies of approximately $20 million by the third year following closing Approximately one-third realized in 2018 Approximately $11 million in one-time costs to achieve cost synergies Accretive to Earnings Expected to
Slide 13: Value Creation Through Synergy Realization
Potential for Meaningful Revenue Growth Opportunities Vertical integration via Inliner & Underground businesses in addition to continued geographic expansion Increased self-performance capabilities for combined company Cross-selling Layne’s Mineral Services expertise to Granite’s industrial and mini
Slide 14: Clear Path to Completion
Regulatory Regulatory review SEC review HSR approval Other customary closing conditions CLEAR PATH TO COMPLETION Approvals Layne Shareholders Filings File Form S-4 / Merger Proxy EXPECT TO CLOSE TRANSACTION IN 2Q 2018
Slide 15: Establishing a Platform for Growth
Delivering on the next logical step in Granite’s strategic plan and evolution Extends diversification efforts into growing water end market segments, leveraging prior investments Positions Granite as a national leader across both transportation and water infrastructure markets Poised to benefit from
Slide 16: Thank You
THANK YOU GRANITE
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