The ALS Ltd (ASX: ALQ) share price has remained reasonably flat today following an announcement from the testing services company which revealed an agreement to offload its oil and gas business.
In afternoon trade the company’s shares are up marginally to $7.49.
What’s the agreement?
According to today’s release, ALS has entered into an agreement to sell its multinational oil and gas business to Chicago-based Madison Industries for $109 million (US$85 million).
The deal will come as little surprise to shareholders. Management had previously advised of its intention to sell the business following a strategic review in November of last year.
ALS will still retain the laboratory services component of the business, with Madison expecting to complete the acquisition of the rest of the business on July 31 2017.
Judging by the muted market reaction today, investors appear to believe that ALS received a fair price for the business.
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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.