ALS LIMITED — Capital/Financing Update 2019

Feb 6, 2019

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asx/media release

7 February 2019

ALS undertakes key acquisitions and innovation investment

ALS Limited (ASX Code: ALQ) today announced the completion of two separate strategic acquisitions in the USA and Chile and a key investment in innovation totalling AUD$51million.

BioScreen Testing Services, based in Los Angeles and Phoenix and employing over 110 staff, provides pharmaceutical and personal care testing in the USA including microbiological, analytical chemistry, toxicology and human clinical testing services. Since 1985, BioScreen has come to be a trusted leader in contract laboratory services. BioScreen’s clients include global international pharmaceutical and cosmetic and consumer products firms and will complement the existing ALS Life Sciences businesses in the pharmaceutical testing sector in Australia, the UK, Europe and South America with a focus on supply chain services for over the counter and prescribed pharmaceuticals.

Based in Valparaiso, Chile, ALS also acquired MARRS International, a leading inspection, certification and control services business in the maritime and industrial field. The acquisition is a key addition to the ALS Commodity Inspection portfolio as well as significantly enhancing the service offering to customers at both ends of major mining, commodity trading and refining logistical routes. Founded in 1987, MARRS International has an established network of operations in key port and mining locations of strategic importance to ALS Commodity Inspection.

As part of its continuing investment in innovation and technology, ALS has acquired a stake in Brisbane based technology company RedEye (www.redeye.co). RedEye which also has offices in the US, provides cloud and mobile solutions for asset and work management and will collaborate with ALS in the development of data management solutions within the asset integrity and reliability services sector. ALS Managing Director and CEO, Raj Naran, will join the RedEye Board as a Non-Executive Director.

Commenting on the acquisitions, Mr Naran stated “The addition of both BioScreen and MARRS are key strategic acquisitions for ALS and very much aligned to the execution of our 2022 Strategic Plan”. BioScreen is a platform acquisition in the pharmaceutical sector in the USA and will provide a wealth of opportunities for our existing ALS Life Sciences business globally. Similarly, MARRS International continues to expand ALS’ global presence in the Commodity Inspection sector in South America and beyond its existing markets in the UK, China, Africa and Europe.

Further information:

Raj Naran Managing Director ALS Limited +61 (7) 3367 7900

About ALS Limited

ALS is a global Testing, Inspection & Certification business. The company's strategy is to broaden its exposure into new sectors and geographies where it can take a leadership position.