Perenti divests MinAnalytical to ALS Limited
Perenti has announced the divestment of its MinAnalytical subsidiary to ALS Limited for $43.6 million.
Mark Norwell, Managing Director and CEO of Perenti said, “The divestment is part of the ongoing strategic review of the Company’s portfolio, including our services, operating regions and businesses. As we continue to focus on optimising the performance of our business and creating long-term sustainable value for our shareholders, we are pleased to have entered into a binding agreement for the divestment of our MinAnalytical business to ALS.”
“ALS is a premier provider of analytical testing data world-wide and has a track record of acquiring and embedding complementary businesses and analytical technology to deliver value for their clients. MinAnalytical, and the significant new technology offering of the Chrysos PhotonAssay machines, is a natural fit for the ALS portfolio and will benefit greatly from the synergies and economies of scale that ALS can offer.”
“Following the transaction, Perenti will retain our 8% equity holding in Chrysos because we, much like ALS, appreciate the significant current and future value proposition that the Chrysos business represents.”
He added, “In line with our significant focus on liquidity and capital management, the net proceeds of this transaction will be allocated across our portfolio to maximise shareholder value. We will continue to evaluate and progress a number of capital management initiatives designed to generate cash flow, streamline our portfolio, liberate cash, sustainably reduce our leverage ratio and efficiently allocate capital across our business.”
“On behalf of the Group Executive and Perenti Board, I want to thank the MinAnalytical team for their valuable contribution over the past 11 years and wish them every success as they transition to ALS.”
Read the full ASX release here.