ALS Ltd. agreed to pay SCF Partners US$533 million to buy Reservoir Group. ALS Ltd, the largest the largest provider of commercial testing services in Australia set the transaction to acquire one of SCF Partners biggest portfolio. Reservoir Group is a Scottish company that specializes in analysis of oil and gas wells.
The acquisition will add an additional US$55 million to ALS's earnings. ALS will sell an estimated A$246 million or US$224 million in new shares to help fund the acquisition. ALS expects that the purchase of Reservoir and Earth Data contribute an addition A$4 million to A$5 million to fund the projected underlying profit of A$95 million to A$105 million.
"The acquisition will considerably broaden our capabilities in upstream oil and gas and will strongly complement our existing laboratory services," Greg Kilmister, ALS's managing director, said in a statement. "ALS will now be able to offer clients a more integrated end-to-end service, which will enhance our market position."
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