On Friday, ALS announced the acquisition of MinAnalytical Laboratory Services Australia Pty Ltd, which operates a Geochemistry testing business based in Western Australia.
The $6 billion global testing, inspection and certification business said the acquisition of MinAnalytical will significantly increase the capacity of ALS’ Western Australian operations, initially by ~40%. With the opportunity to increase this further by utilising unused capacity within MinAnalytical and leveraging ALS’ existing sample preparation network.
This is in addition to a 15% increase in capacity across the global ‘hub and spoke’ Geochemistry network which is expected to be completed by the end of FY22.
Established in 2010, MinAnalytical has operations in Perth and Kalgoorlie and is expected to generate ~$18 million of revenue in the calendar year 2021.
In addition to its fire assay testing capability, MinAnalytical utilises Chrysos PhotonAssay technology, currently operating three units with an additional two scheduled to be commissioned in 2022. The technology complements ALS’ existing Geochemistry capability and offers the opportunity to further expand its mine site testing offering to clients.
ALS will acquire 100% of the equity in MinAnalytical for $39 million, paid from existing debt facilities with no requirement for shareholder approval.
Managing Director and CEO, Raj Naran commented “This is a strategic bolt-on acquisition for our Geochemistry business, which further expands our capacity and technological service offering to our clients. It supports our strategy to grow mine site testing which delivers more stable sample volume throughout the commodities cycle.”