News: ALS expects divestment to generate $22M

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ALS Limited (ASX:ALQ) plans to generate about $22 million in cash from the divestment of its non-food hospitality supplies business. 

 

The laboratory analysis group has sold Reward Distribution to E.CF Group in partnership with some members of the existing Reward management team.  

 

E.CF Group is one of Europe’s largest non-food hospitality suppliers, employs more than 1,000 staff and has operations across Europe, the Middle East and North America. 

 

ALS CEO Greg Kilmister says the sale completes the divestment of the company’s non-core businesses. 

 

The news comes after ALS cut its first half profit forecast in September due to pricing pressures and ahead of its interim results due on November 24.

 

ALS reported a net profit of $157 million in the full 2014 financial year.